GM Closed at a key level of 61.10 (.618 Fib level, High to Low on the daily) Watching closely here as a bounce will likely lead to 61.40 then to our first major resistance level of 61.80. It tried to break this level twice on Friday and rejected both times. Also, this has been a major area of resistance last week as it touched and rejected. It did break through on Thursday which sent it to 62.4 then higher to 63.3.
GM above 61.80 taking the 1/21 64c, watch for resistance at 62.40 (Start trimming at this level)
If it makes it past 62.40 the next stop is most likely testing 63.3 . If it rejects here, I’m looking to enter puts. Don’t forget to take profits on the way up.
GM reject at 63.3 taking the 1/21 62p, watch for support at 62.4 (start trimming here)
If GM loses 60, watch for a put entry. Be careful however, it had a strong support this week of 60. Wait for confirmation before entry. Personally, I’d stay away from this play unless there was crazy strong selling pressure right at this level.
Recap:
GM above 61.80 taking 1/21 64c (trim at 62.40)
GM reject at 63.3 taking 1/21 62p (trim at 62.4)
GM below 60 taking the 1/21 58p (take profits as you see them)
GM above 61.80 taking the 1/21 64c, watch for resistance at 62.40 (Start trimming at this level)
If it makes it past 62.40 the next stop is most likely testing 63.3 . If it rejects here, I’m looking to enter puts. Don’t forget to take profits on the way up.
GM reject at 63.3 taking the 1/21 62p, watch for support at 62.4 (start trimming here)
If GM loses 60, watch for a put entry. Be careful however, it had a strong support this week of 60. Wait for confirmation before entry. Personally, I’d stay away from this play unless there was crazy strong selling pressure right at this level.
Recap:
GM above 61.80 taking 1/21 64c (trim at 62.40)
GM reject at 63.3 taking 1/21 62p (trim at 62.4)
GM below 60 taking the 1/21 58p (take profits as you see them)