Weekend Trader Series
June 30, 2024
Open Positions Update
- Please extend the scheduled time-stop date on the Celestica (CLS) September 20, 2024, 50-strike call to Monday, July 15.
The following is this week's recommendation:
Seagate Technology (STX)Place a limit order to buy the Seagate Technology (STX) September 20, 2024 100-strike call at a limit price within range of the current market asked price when you place your order. At the close on Friday, June 28, this option was offered at $9.40. STX closed at $103.27 on Friday, June 28.Do not attempt to enter this position after Monday's close.Please use the following guidelines to manage the position:- Exit the position if the option is at a 100% gain from your entry price.
- If the option has not reached its target profit by 3:00 p.m. Eastern time on Monday, July 22, close the position.
- If there is a change to the above closeout parameters, we will notify you in your regular Sunday evening communication.
Shares of Seagate Technology (STX) just broke and retested their March resistance level on the charts. What’s more, the stock hit a 52-week high during the June expiry week. With this solid technical foundation in place, we’re recommending a new long position on STX.
The security could benefit from shifting sentiment. Despite Seagate Technology stock’s 66.7% and 20.9% year-over-year and year-to-date gain, respectively, 12 of 26 covering brokerages still recommend a tepid “hold” or worse. It’s also worth noting that shares rallied amid a rise in short interest since March, and it would take five days for these traders to buy back their bearish bets.
Our recommended September 100 call has a leverage ratio of 7.1, and will double on a 14.9% rise in the underlying security.
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