Current Long Options Portfolio – 2020-12-27

By | December 27, 2020

I have long options positions in the following at this time:  $ACB, $DGLY, $FISV, $ON, $SIG, $SNAP, $SRNE

As this is the first portfolio update, I apologize for this being a bit longer.

ACB

$ACB is one of the cannabis stocks that has been on many radars.  After the initial run-ups around the election, interest is coming back.  This is one that gave me more than one nice win, so, why not keep an eye on it.

In the daily chart, it ran up again around Thanksgiving, and has been sliding down, consolidating along the way.  On the chart, you can see both the fib retracement lines from its high around the election and the fib extension lines for the Thanksgiving run-up.  

In this, the 38.2% extension line is showing to be strong support on the daily chart, and here again, on the hourly chart, it is holding up, as well.

The key for an upside break is the double-resistance (38.2 Ret/50.0 Ext) lines around 9.50/9.57.  It may test it at least one more time before a breakout.  But, I feel comfortable in getting into my position around the 38.6 ext. support.

DGLY

$DGLY is a super squeezer.  On the various timeframes, it has been squeezing for 3 weeks, 17 days, 37 4-hr blocks, 77 2-hr, 20 30-min, and 30 15-min timeframes.  

After its initial run-up and fall back down in mid-July, as seen on the daily chart, it has been slowly, very slowly, moving up.   It hit first 23.6 retracement (3.06) at one point but was rejected.   However, it continues to slowly … very slowly .. too slowly climb.  With the squeezes, I fully expect this to fire soon, and hoping that the 15.32% short float helps that move, as well.

In the hourly chart, the current channel is easy to see, as well as how it is reacting to the 2nd retracement lines that are drawn.   The 61.8 Ret(2) ($2.80) is the key level for a potential breakout to watch.

FISV

Timing is everything, especially with options, right?  For this, my timing looks to have been off.   After the drop at the beginning of this past week, I was looking at $FISV to potentially offload and try again later. 

From a momentum standpoint, $FISV is trending higher, but looks to be in a frustrating consolidation phase.  However, as you can see in the daily chart, just as I was looking at cutting my losses, it decided to hold the 61.8% ext. around 110.50.   And then, on Thursday, it closed above the last 0.0% retracement. 

The hourly chart is showing potential momentum building for an upside again.  For me to stay in this, I want to see it get it back to the 78.6% extension/38.6 ret(1)  this week and at least hold around there (115.46).

ON

Of all my long options positions, I have been in $ON the longest.  The plan was a long-term play, and that hadn’t changed.   Though, we are getting close to targets.

The daily chart shows a continuing trend upwards.  Yes, with two fib extensions and one retracement, it looks a bit busy.  The first extension was the first run-up around the end of March from its lows.  The 2nd from strength from Sept-Oct.  And, the last set of lines is from its most recent retracement as it consolidates again.

As you can see on the daily chart, the fib lines appear more to be support than resistance along the way, which is good for some more potential run.  

The hourly chart is showing good support as it continues to wind its way higher, with Thursday’s close above the latest 78.6.   Should it break its 52 week high (32.6), this can potentially run some more pretty quickly.  

SIG

With the recent retracement, given $SIGs upward momentum on the longer chart, I have been bullish on this since it was rejected at the 23.6% retracement a couple weeks ago.  Now, the question is, will it come out of the current consolidation in time to help me avoid too much time decay.

The daily chart shows it staying in a channel between its 50.0 and 61.8 extensions for the last 8 days.

The hourly chart shows some weakness on Thursday, especially as the 30 hr. SMA moved above the 13 hr. SMA during the day.   However, given the light volume that day, we’ll see what happens on Monday.

Given the timeframe for the option, if this looks to drop to the latest retracement, it may be time to let go and look at it again later.  However, if it moves above the 61.8 extension, see if it challenges the 52 week intraday high of 32.22.

SNAP

$SNAP has bullish momentum, but the question is, when is a good time to get in.  I picked this position up on Thursday, as it came down to the bottom of its current channel on light volume.   I’m looking at this as being a bargain point for getting in for its next leg up.

As can be seen on the daily chart, the current channel is playing between its 161.8 ret. and 161.8 ext., with the whole number (50) providing additional support on the bottom.   

The hourly chart further shows the play in the channel, with it dipping on light volume under the bottom by about a quarter but holding at 50.00.  Given the light volume on Thursday, I fully expect that this price will be seen as a bargain with buyers coming in.  

I am looking to ride this to at least the top of the channel and if it breaks the 52 week intraday high of 54.71, continue on higher.  

SRNE

$SRNE has been a recurring COVID play on the diagnostics side.  I was already in this at the beginning of the week before the Wednesday run-up with the news on its latest test and sold one set of my positions.   I am looking for this to climb higher.

This is another case where the use of multiple fibs (2 retracements and 1 extension) makes the charts a bit busy, however, they highlight a few key resistance and support points that can be critical.

The daily chart shows that since it fell from the Sept/Oct run-up, it stabilized after its last earnings and has been moving up the steps.  It held the 61.8% extension in the last pull-back, and has been moving upward.   

The hourly chart shows a couple key areas to watch.  On light volume, it fell under the 8.39 double line (strong resistance/support) on Thursday.  If it gets back above this and holds, I look for a run to move above its most recent high of $8.89.   However, if it moves below the support level around 7.70 on stronger volume, it may stay in a consolidation mode for a bit longer.  

My contracts dates are a few months out, so I have some time.  But, like always, need to pay attention to the time decay.