After some early morning moves, this is beginning to feel like a day where the options writers are going to be able to get us in a tight range, at least until very late in the day to suck out whatever time premium is left in the May monthly options. It's Friday, so I'm not looking to do much trading into the weekend. While the market still feels set up better for intraday scalps than overnight plays, I will still consider some overnight plays; however, holding over the weekend on trades is not a high priority for me. I do have a few charts I am watching into next week, though, which may set up some interesting trade possibilities.
Corning (GLW) may be an older name, but it has really come back to life over the past two years. This name has developed a fantastic channel over the past six weeks. It should be setting up for a test of either support or resistance next week based on the wedge that has formed within the channel. It sets up beautifully for a June $21 straddle play in my view. A bounce off $20 could be bought for a trade back to $21.50. A break below should have folks looking short. The upper portion of the channel, around $21.50, offers the flip side of that trade. One could short on a rejection from $21.50, but anything over that should be bought.
Hess Corp. (HES) has a very similar set up to Corning. This is another name where a channel has formed and a straddle may be a very good play. While Corning feels more likely to break higher, Hess feels more likely to break lower. Anything under $87 looks like it could lead to an $82 print, while a break above $89 should lead to $95 and possibly $100. This channel is so tight, I would only play the straddle or a break out of the channel following the trend.
I know nothing about Platform Specialty Products (PAH), at least not yet. The stock has broken out from a tight consolidation spurred by Bill Ackman's announcement of a position in the name. I'm not willing to chase yet as it has moved from the $19.75 area up to $22.50 in just two days. This is coming out a very nice squeeze, but I am looking for a retest of the $21 area. If the stock can retrace to $21 -- but not break $20.60 intraday or $21 on the close -- then I will look to add a swing long position with a partial stop on a close below $19.25 and a full stop on a close under $18.