Wednesday, June 8, 2016
#PCLN Thoughts & Levels for June 8, 2016 by @MockTrade
Currently I am holding a PCLN Strangle with an August expiration which was engaged when PCLN was balanced and consolidating
between 1250 & 1302. Once PCLN breached above 1302
my bias turned from neutral to bullish; however in order for the Call side of
the August expiration Strangle to push deep into profit PCLN now needs to breach and hold above 1374s/75s.
PCLN is now 20 points-ish below yesterday’s (Tuesday
June 7th) high of day (HOD) and is also currently trading below
yesterday’s value area (VA) as well while below 1358s. Trading below value
is not a good sign for a Long bias but until first below 1340 with 1325s-1320s zone
as line in sand (LIS) I will assume the pull-back from yesterday’s HOD is just
some profit taking following the +137
point upside move from the 1236s area
back in mid/late May.
If PCLN was still
holding within the previous balance area between 1250 & 1302 ahead of
the June rate decision it would not matter to me which way PCLN traded post rate decision in
regards to the current August Strangle, but now that PCLN is well above the previous balance area/+1302 it is definitely more ideal for PCLN to get above 1375s
before FOMC rate decision next week. If so I will then have sights on 1393s-1402s zone then 1422s-1425s zone to consider scaling
and/or exiting the entire August expiration PCLN Strangle.
Ethan Premock
Futures & Options Strategist
Hamzei Anlytics, LLC
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