Weekend Trader Series
September 15, 2024
Open Positions Update
- Please extend the scheduled time-stop date on the Carrier Global (CARR) October 18, 2024, 67.50-strike call to Monday, September 30.
The following is this week's recommendation:
NextEra Energy (NEE)Place a limit order to buy the NextEra Energy (NEE) January 17, 2025 82.50-strike call at a limit price within range of the current market asked price when you place your order. At the close on Friday, September 13, this option was offered at $7.35. NEE closed at $84.65 on Friday, September 13.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, October 21, close the position.
- If there is a change to the above closeout parameters, we will notify you in your regular Sunday evening communication.
Utility stock NextEra Energy (NEE) just hit a 52-week high after breaking above resistance just above the 80 strike that has been in place since May. Plus, the ascending 20-day moving average now sits at this former level of pressure.
On the weekly chart, NEE just hit a weekly close above a trendline connecting weekly highs since the end of 2021. Plus, the equity took out heavy call open interest (OI) at the 80 strike that expires on Sept. 20, with September being the heaviest call open interest month.
Short interest hit an all-time high in May. And though there’s mostly been covering since then, there was a 15% build from July-August ahead of this week’s breakout that has fresh shorts underwater.
Our recommended January 82.50 call has a leverage ratio of 7.1, and will double on a 14.8% rise in the underlying shares.
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