00:00 Speaker A
we’re bringing now Bob Lang, Explosive Options founder for the Options Playbook sponsored by Tasty Trade. Let’s get to some uh specific names and trades too. Start with Oracle. You mentioned this W formation. Break that down for us simply.
00:10 Speaker B
Well, if you look at two different uh chart patterns uh Josh, a W and an M, I would call I would say W for win, M for murder. So M is more bearish, W is much more bullish. A double bottom hit in Oracle recently. It’s pulled off of the um 165, 170 level and uh it’s pushed much higher and moving up towards uh some resistance levels right now. But a nice series of higher highs, higher low Josh in in that chart makes me uh feel pretty good about getting long this uh this stock. Resistance is right here at the 200 moving average which’s call it $208 right now. It’s about uh 5% away from the current stock price. Strong option call volume has been in the uh June 200 to 240 strikes. Now of course today being the last day of May monthly calls, June becomes the front month starting on Monday. So there’s going to be a lot of brisk action coming into those short-term options. Volume trends are pretty positive. I’m looking at the August 210 strike call Josh, roughly about 18 to 20 bucks.
01:13 Speaker A
Costco, uh Bob, what’s the trade there?
01:15 Speaker B
I think retail is going to have a little bit of a hard time with higher interest rates, but I do like Costco. It’s had a good move today, had a breakout move. It’s uh not at the high of the session here, but it uh it’s had a nice move above 1,000. It’s about 1,056 right now. Volume trends are pretty positive here. Seeing good flow in the August 1100 strike, which is about 5% away from the current stock uh price. I think it looks pretty attractive here. I like buying this strike at about $27 for a move to about 1125, maybe up at 1150 eventually.
01:44 Speaker A
And then finally Alphabet, uh Bob, you say here the stock is overbought but not a sell.
01:50 Speaker B
Overbought is simply a condition, it’s not a signal. So it’s just a condition that the stock is in. A stock can remain overbought for a long period of time. On the flip side, it can stay oversold for a very a long period of time as well. An overbought condition doesn’t really scare me in terms of wanting to get into the trade. would would a a pullback be nice? Sure, but I mean when does that pullback stop, right? And if it goes down too far and I’m in an options trade, that uh volatility is going to have a a major effect on the options price and the time decay as well. The stock pulled back briefly after a a massive run, Josh. It started in March. It’s got a near near new all-time high right now. It hit an all-time high about a couple of weeks ago. I’m seeing some good turnover in the June 400 uh strikes up up to the 430 level. 400 to 430. so that if somebody’s looking for a large move in that stock over the next uh three and a half to four weeks. Um current price for the 405 July calls, which is the one that I like, um paying about 21 bucks. It’s about um 5% of the price of the stock, which is pretty fair. The uh the market is looking for about a $48 move into those uh those options at that expiration date. If the uh stock continues to move higher, Josh, I think we’re looking at 440 to 450 over the over the uh next uh six, seven weeks.
