Plays of the Week: July 29 – August 2
New Plays for the Week
This week, we’re focusing on four key stocks: $SPY, $IWM, $TOL, and $ABNB. Here are our analysis and trade recommendations:
- Support Level: 543.75
- Resistance Level: 544.90
- Call Options:
- Enter 547c on 7/31 if 544.90 holds
- Price Targets: 547.75, 549.10, 550.25
- Put Options:
- Enter 540p on 7/30 if 543.75 breaks
- Price Targets: 542.30, 541.40, 539.64
According to a study by the Federal Reserve, the S&P 500 index has historically been sensitive to interest rate changes (1). With the Fed’s interest rate decision looming, we’re watching $SPY’s movement closely.
- Resistance Level: 226
- Support Level: 223.60
- Call Options:
- Enter 230c on 8/2 if 224.75 holds
- Price Targets: 226.50, 227.07, 229.05
- Put Options:
- Enter 221p on 8/2 if 223.60 breaks
- Look for 0DTE puts to 224 if 226 rejects
As noted by Bloomberg, the Russell 2000 index (tracked by $IWM) has been highly correlated with interest rate changes (2). We’re expecting Powell’s rate decision to drive $IWM’s movement.
- Resistance Level: 140-140.20
- Support Level: 137.30
- Call Options:
- Enter 142c on 8/9 if 137.30 holds
- Put Options:
- Enter 137 puts on 8/2 if 140-140.20 rejects
According to a report by Zacks, $TOL’s earnings are expected to be strong, but the stock’s valuation is already high (3). We’re looking for a correction to enter calls or puts.
- Support Level: 143
- Call Options:
- Enter 155c on 8/16 if 143 holds
- Earnings Run-Up: Look for a pre-earnings run-up to 154
As noted by CNBC, $ABNB’s earnings are expected to be strong, and the stock has been undervalued (4). We’re looking for a discount to enter calls.
- Resistance Level: 470
- Call Options:
- Enter 485c on 8/2 if 470 breaks
- Put Options:
- Enter 450p on 8/9 if 470 rejects
According to a report by The Verge, $META’s earnings are expected to be strong, but the stock’s valuation is already high (5). We’re looking for a pre-earnings run-up or a correction to enter calls or puts.
Remember to always do your own research and consider your own risk tolerance before entering any trades.
