Capital One Financial has been a member of the Chaikin Power User Portfolio as a single contract, long dated and deep-in-the-money call option since the beginning of the Fall. It maintains a Very Bullish Power Gauge rating and may be catching a bid because Financials perform well in a rising interest rate environment.
Today's price action included a price pattern worth learning about: a bullish engulfing candlestick pattern. Since it occured at support (bouncing off old resistance) it portends a possible run through significant resistance. Though we'd look for price to break through 72.69 before initiating a new position, today's bullish engulfing bounce means I'm going to resist the temtation to sell an out-of-the money call, despite the fact that this stock is right as resistance and is over-sold according to the Chaikin Oscillator. Expiration on our call isn't until March, so I'm all about letting this trend trade play out.
Today's price action included a price pattern worth learning about: a bullish engulfing candlestick pattern. Since it occured at support (bouncing off old resistance) it portends a possible run through significant resistance. Though we'd look for price to break through 72.69 before initiating a new position, today's bullish engulfing bounce means I'm going to resist the temtation to sell an out-of-the money call, despite the fact that this stock is right as resistance and is over-sold according to the Chaikin Oscillator. Expiration on our call isn't until March, so I'm all about letting this trend trade play out.
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