4 Trade Ideas for KeyCorp: Bonus Idea
KeyCorp, $KEY, fell hard from a top in February, bouncing in March after losing over 61.8% of its value. The bounce continued to a top in June, shy of the 200 day SMA. It pulled back to the 50 day SMA and has rode it higher ever since. The RSI is rising in the bullish zone with the MACD flat and slightly positive.Ā
There is resistance at 13.50 and then 14.15 before 15.25 and 16 then 17 and 17.60. There is rising trend support and further support found at 12.90 and 12.35 then 11.85 and 11.45. Short interest is low at 1.9%. The stock pays a dividend with an annual yield of 5.50% and has been trading ex-dividend since August 31st. The company is expected to report earnings next on January 21st.Ā
The October 30 Expiry options have the biggest open interest at the 13.50 strike on the call side. November options have big open interest at the 11 put and 13 call strikes. December options have open interest building from 10 to 12 on the put side and bigger and focused at 13 and 14 on the call side. The January options have biggest open interest at the 15 and 17 put strikes, and then twice as big at the 20 call.
KeyCorp, Ticker: $KEY
Trade Idea 1: Buy the stock on a move over 13.50 with a stop at 12.90.
Trade Idea 2: Buy the stock on a move over 13.50 and add a November 12.50 Put (35 cents) while selling the December 15 Call (25 cents).
Trade Idea 3: Buy the November 6 Expiry/January 14 Call Calendar for 65 cents.
Trade Idea 4: Buy the January 12/15 bullish Risk Reversal for free.
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After reviewing over 1,000 charts, I have found some good setups for the week. Ā These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with one week left before the election, saw equity markets were consolidating with minor retrenching. They were not showing signs of nervousness around the outcome.
Elsewhere look for Gold to continue its pullback in the uptrend while Crude Oil consolidates in a broad range. The US Dollar Index continues to drift to the downside while US Treasury prices are in a downtrend. The Shanghai Composite looks to continue to consolidate while Emerging Markets remain in an uptrend.
The Volatility Index looks to remain in moderate territory, neither helping nor hurting equity markets. Their charts are in consolidation on the shorter timeframe and pausing in the uptrends on the longer frame. On the shorter timeframe the IWM is holding up best with both the QQQ and SPY pulling back in bull flags. Use this information as you prepare for the coming week and tradāem well.
