4 Trade Ideas for Hess: Bonus Idea
Hess, $HES, comes into the week nearing support and the 200 day SMA. This is the third leg down since making an all-time high in January. The 200 day SMA has roughly held as support each time (4) price has touched it since moving over it and starting an uptrend in November 2020. The RSI is falling in the bearish zone with the MACD dropping and negative.Ā
There is support lower at 129 and 122.50 then 119 and 116 before 114.75 and 109.50. Resistance higher is at 133.25 and 137.50. Short interest is low at 1.5%. The stock pays a dividend with an annual yield of 1.35% and began trading ex-dividend on Friday. The company is expected to report earnings next on April 25th.Ā
The March options chain shows big open interest at strikes on the 5's on the put side. On the call side it is big at 145 and 150. The April chain has biggest open interest at the 130 put and it is spread from 140 to 150 on the call side. In the May chain open interest is biggest at the 130 and 120 strikes on the put side and at the 145 and 150 strikes on the call side.
Hess, Ticker: $HES
Trade Idea 1: Sell the stock short on a move under 129 with a stop at 133.25.
Trade Idea 2: Sell the stock short on a move under 129 and add an April 130/135 Call Spread ($2.70) while selling the May 110 Put ($2.40).
Trade Idea 3: Buy the March/April 125 Put Calendar ($3.70).
Trade Idea 4: Buy the April 130/125-120/115 Split Wing Put Butterfly ($1.50).
If you like what you see sign up for more ideas and deeper analysis using thisĀ Get Premium link. Ā
After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into March options expiration, saw equity markets register their worst week in months.
Elsewhere look for Gold to continue its move higher and possibly out of consolidation while Crude Oil consolidates in a tightening range. The US Dollar Index looks to continue in consolidation while US Treasuries rise in their consolidation. The Shanghai Composite looks to pause in its uptrend while Emerging Markets trend lower.
The Volatility Index is now slightly elevated and looks to move higher making the path more difficult for equity markets to the upside. Their charts look damaged on the shorter timeframe, with the IWM looking similar to capitulation. On the longer timeframe the QQQ is holding up the best but looks better to the downside with the SPY and IWM nearing a test of the December low. If that happens the young uptrends are in jeopardy. Use this information as you prepare for the coming week and tradāem well.
