This Week’s 21st Century Covered Call Selections
There are two new selections this week: UTX & IWM
| Market Edge Opinion: UTX-The technical condition of UTX is improving as several of the pertinent indicators have turned positive and the stock appears to be under accumulation. The stock is underperforming the market over the last 50 trading days when compared to the S&P 500. The MACD-LT, is confirming that the intermediate-term trend is bullish at this time. UTX’s chart formation suggests an upward trend is beginning/ stock is in the early stages of a rising trend. A close above $111.54 is a number to watch to confirm a trend reversal. Momentum as measured by the 9-day RSI is gaining in strength. Over the last 50 trading sessions, there has been more volume on up days than on down days indicating that UTX is under accumulation, which is a bullish condition. The stock is trading below a falling 50-day moving average. A close above this moving average would be supportive of the improving conditions.
IWM – Though the technical outlook remains somewhat mixed there are signs that point to an improved outlook for the stock. Several of the pertinent indicators have turned positive and the stock appears to be under accumulation. Should the stock break above recent resistance numbers it could mark the beginning of a new uptrend. Over the last 50 trading days, when compared to the S&P 500, the stock has performed in line with the market. The MACD-LT, an intermediate-term trend indicator, is bullish at this time. IWM’s chart formation suggests an upward trend is beginning/ stock is in the early stages of a rising trend. A close above $141.59 is a number to watch to confirm a trend reversal. Momentum as measured by the 9-day RSI is gaining in strength. Over the last 50 trading sessions, there has been more volume on up days than on down days indicating that IWM is under accumulation, which is a bullish condition. The stock is above its 50-day moving average which is pointed down. This is supportive that the trend is improving.
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Current Open Positions
| The Market Edge – Market Posture: | Bullish | VIX | 17.80 | Neutral | |||||
| # Of | Stock | S – Call | L – Call | Credit | Best | Week % | Approx. | Approx. | |
| Stock | Weeks | Price | Strike | Strike | Spread | Bet | Return | Div Date | Dividend |
| FB | 3 | $146.07 | 147.0 | 149.0 | $0.94 | 6.0 | 0.6% | None | $0.00 |
| IBM | 3 | $133.00 | 133.0 | 135.0 | $0.82 | 6.0 | 0.6% | None | $0.00 |
| UTX | 1 | $113.89 | 114 | 116.0 | $0.84 | 8.0 | 0.7% | None | $0.00 |
| IWM | 1 | $146.02 | 146.0 | 148.0 | $0.92 | 6.0 | 0.6% | None | $0.00 |
| Prices Are Monday’s Opening Prices | |||||||||
| Stocks have strongest Market Edge Power Ratings | |||||||||
| Weekly % Return: The Higher The Better | |||||||||
| Best Bet: The Bigger The Better | |||||||||
| Commissions & Dividends Not Included | |||||||||
Results for this week’s trades will be posted over the weekend on the Scoreboard.