SFAZ, Options Trading & Extended Watchlist

Options Trading
We dabble in options trading from time to time, and want to remind our readers that this is not for the faint of heart. These ideas are meant for day-trading opportunities, and we can’t stress enough that it should be considered very high risk. That being said, we’d still like to share our current thoughts on the subject.

It appears as if the markets want to open up with an uptrend today. We’ve seen the biggest losses of the year for the past two days running. While uncertain as to whether that pullback to continue, at least from where we stand now, it appears that the markets want to rebound. In the event of an overall uptrend today, we are going to be focusing specifically on the weekly SPY Calls, and VXX Puts.

On the flip-side, if we continue to see more of this recent sell-off, we will obviously be reversing our strategy to focus mainly on the SPY Puts, and VXX Calls, as the two indices tend to move inversely to one another. At any rate, we want to stay close to the money, and have our strike price be pushed in the money. For example, the SPY is currently trading at 151.32 pre-market, so we are currently looking at the 151.00 Weekly SPY Calls.

Safe Technologies International, Inc. SFAZ

We first alerted SFAZ via our extended watchlist on January 4th. On that day, we saw the stock run from .008 up .014, for a one day pop of 75%

After mostly trading sideways since that initial run, the stock has now found a solid level of support at .002. Chart conditions are beginning to come across as favorable once again, as we’ve pointed out below.

Accumulation & Distribution have been on a steady rise, even as the stock has been feeling out a bottom. The RSI continues to hold above the 50MA overlay and looks like it’s beginning to push the 50-line. We appear to be at a pivot point with regard to resistance, the 50 and 20DMA’s at .0026, and .0028, respectively. Meanwhile, the blue bars on the MACD histogram are about to flip up topside as we are about to see a bullish cross, and the Slow STO recently passed above the 50MA overlay.


Extended Watchlist: