ARG released earnings today and investors didn’t respond well, but I believe this to not be as bad as it may look at first glance. Today’s sell off didn’t violate any key support areas and the RSI remains in bullish territory as it oscillates between 80-40. Below is a weekly chart and volume appears to be muted compared to past weeks.  The fact is every stock needs to have a correction to shake out the weak hands and that is all this looks to be.

This would require a little longer than normal holding period for this to give a good return, but I believe over the next 2-4 months this stock will be considerably higher than today’s close. If this were to retest the lows I would consider initiating a position in this stock.

 

Here are a few example of similar setups that I asked Chris Ebert to offer an options strategy with both fairing quite well so far if you compare the price of the stock at the time of the article to today’s close.

Got Questions About Stock Options?

Low Risk Options For Playing With FIRE


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