Been keeping an eye on Joy Global (JOY) since Mark_Lexus entered the trade here. Hasn't quite turned out the way he wanted but he was able to roll it down and out to May. One of the few stocks I watch that isn't reporting earnings prior to May opex. Looking at a couple different ideas here. Keep in mind the highest put OI for May is currently at 70, so ideally I'd like to keep the short strike below that.
#1 Considering selling some put spreads if the stock pops last week's highs of around 77.25. At that point I may go to 72.5/70 or 70/65 depending on the market conditions at the time, and the premium I would receive. There is also a lot of price/volume resistance above 73 (even if about 60% of it is on the sell side).
#2 Is if the stock pulls back to the 20-day sma (the dotted green Bollinger band centerline). At this point I'll look at 65/60 or 60/65 if there is enough premium.
#3 Is to use the rising long-term trendline on the weekly chart for support. In this case I'll most likely look to enter 70/65 spreads.
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