• Chart of the Day: EMC Corporation (EMC)

    by  • August 9, 2013 2:04 pm • Charts to Watch, Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart is of EMC Corporation (EMC) which develops, delivers, and supports information infrastructure and virtual infrastructure technologies, solutions, and services.

    Ticker:  EMC Corporation (EMC)

    What I Am Looking At:

    • Spent most of the year in negative territory but finally jumped the 0 percent year-to-date level on a positive earnings reaction in July
    • Breaking upside from tight consolidation above the breakaway gap which could act as support
    • Possible run to round-number $30 level which coincides with the 2012 high
    • Short interest has increased over 90 percent since May of 2012
    • Shares may be at a point where a majority of short positions have a losing position and may consider covering
    • The 50-day buy-to-open put/call ratio ranks in the 98th percentile of all readings taken during the past year, an indication of extreme pessimism among option participants
    • A potential roadblock from peak call open interest residing at the 27-strike for the August series, which is predominantly sold-to-open

    Strategy:  Initiate long positions with a stop below late July lows with the caveat that the $27 level may prove to be resistance due to the August peak call open interest


    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.


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