• Chart of the Day: SunTrust Banks (STI)

    by  • May 1, 2013 1:40 pm • Charts to Watch, Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart is of SunTrust Banks (STI) which operates as the holding company for SunTrust Bank that provides various financial services in the United States. The company operates in three segments: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking.

    Ticker:  SunTrust Banks (STI)

    Strategy:  Short Trade

    What I Am Looking At:

    • Underperformance on a year-to-date basis, +2 percent
    • Trading at the top part of the 8-month range
    • $30 round number level has been significant, marking prior tops in 2010 and 2011
    • Relative Strength Index indicating an overbought situation
    • Peak call open interest for the May series resides at the 29- and 30-strike prices which could be major roadblocks for any advance over $30
    • The open interest put/call ratio stands at 0.73 ranking in the 15th percentile of all readings taken during the past year, indicating widespread optimism in STI
    • 50-day buy-to-open call/put ratio is 3.23, indicating option players are scooping up calls 3 times as they are with puts
    • 11 out of 22 analysts rate the shares a “strong buy”, potential for future downgrades

    Strategy:  Sell short with a stop above $30, target $25

     

     

      This is a required question
      Never submit passwords through Google Forms.

    About

    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.

    http://www.schaeffersresearch.com/

    Leave a Reply