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Expeditors (EXPD) Still 5 points away from being profitable. Target low price is $58; high target stock price is at $74. Stock may begin to sell off quickly after break through the yellow signal line at $69.35. If prices don't move higher by Friday, continue to hold the puts for new lows. Expeditors (EXPD) total cost $2400. The Jan $70 calls with a write spread of Jan $75 calls, and Jan $60 puts, all to contracts each position. The high was reach in this stock on Nov 25h, less than 10 days after doing the spread. You could have closed out your spread on the calls, Jan $70 calls and the $75 calls. The Jan $70 Calls were high as $4.5 to $5.00 before dropping lower. Closing out at the high price would allow you to capture the price of the straddle spread, meanwhile holding on to the puts for free. This stock is 99% held by institutional investors, so profit taking below the red signal line will lead to a quick fall to the red signal line maybe on an earning warning by a competitor or this company itself. If you are holding the spread straddle, buy an offsetting Jan $75 calls on the open if stock opens lower in the morning. There is a high put/call ratio at 333, so these institutional investors are betting on price to move higher by Jan 20th expiration. The stock is resting on the yellow signal line (45 day moving average) on the close today. I expect a bounce higher, so uncovering your Jan $75 call will allow you to profit on any move higher above $70 till options expiration. The profit potential for this trade is huge, you are profitable if the stock price falls below the red signal line at $58 and above $73. Right now the price is trending down with red signal line support at $60.00
This stock has momentum playeys, buying on the last testing of yellow signal line. The stock has continued to climb, up currently over $88 as the price of oil has been droping.
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