By Dan Darrow

September 01, 2022

Intraday Update: PANW, ENPH, FCX, TSN

The past two sessions have seen overnight rallies lead to intraday selloffs, but this morning the indices are opening weak to continue the recent slide. While we are getting very oversold in the short term, we still need to see compelling reversal signs to indicate a sustainable bounce is coming. It will likely be another busy session of updates, but there are a couple of positions in need of managing early:

  • Both of the trade ideas from yesterday's letter (PANW and ENPH) are bullish strategies, so with the down open, the plan will be to stay patient during the first 30-40 minutes to make sure the setups are still valid.
  • FCX is indicating an open below the tight 29 stop level, so the Oct21 $33 - $37 call spread needs to be closed early. We don't want to let a material breakdown below the 50day sma and August support develop.
  • Staples are getting hit early following weak prints from CPB and HRL, with the latter dragging down TSN with it. TSN has dropped sharply over the past week and is indicating an open at/under 75, so with the stock getting very extended on the downside, we will work quickly this morning to wrap up the bearish swing trade. The Oct21 $75 - $72.50 put spread roll down will be closed off the open.

Open Positions

* The following Open Positions pertain to the Options In Play trade ideas from this and previous editions. Disclosure of the Trader Co-Author’s actual portfolio holdings, as of the date of each publication, is made below under "Trader Author Portfolio Holdings.".

Trader Author Portfolio Holdings

**As of the date and time of publication