MO

[Amun Ra]

Earnings release coming up on the July 30th. After seeing PM do that nearly 10% jump after their earnings, it seems possible that we could see something like that with MO. If smokers are buying more cancer sticks worldwide, they're probably keeping that trend going in North America too. This seems like a good options play as MO generally has some pretty low option prices.

I've picked up some Jan 2020 $47.50s and Aug 2 $49 calls.

 

[cornerstone]

It's a downtrend and as the heatmap shows there is a big resistance in the 50. If the price will go below 49 there is a good probability the price will continue to drop. If the price will go more then 50 will have to establish to determine a change in the trend.

 

[Amun Ra]

You traders that trade on TA have ruined trading. How can a company increase revenue and profit, but drop in price? Looks like im going to lose on my Aug 2 calls now unless there's some miracle tomorrow. Luckily I'm pretty sure the market will come to it's senses and I'll make it back with my Jan 2020's in a month or so.

 

[cornerstone]

the market represents the participants' belief in the price level which reflects in TA. even if a company increase profit it doesn't mean that the price reflects its worth

 

[Amun Ra]

the market represents the participants' belief (WHETHER RATIONAL OR IRRATIONAL) in the price level which reflects in TA. even if a company increase profit it doesn't mean that the price reflects its worth

Fixed that for you.

 

[cornerstone]

you are absolutely right, if it was based on a rational decisions trading was much easier

 

[Amun Ra]

Well those merger talks this morning really saved my ass. What a nice surprise to see MO jump 10% this morning.

 

[Amun Ra]

Well....that didn't last long.