If you take a look at the weekly chart of Under Armor (UA, $55.41, off $1.00) below, you can see that I still have some higher targets from an old setup which come in at 65.49.
Now IF this target is eventually going to be met, then we should be looking at pullbacks on the daily chart for a possible entry on the buy side. We are seeing such a pullback now on the daily chart which is also illustrated below. There are two zones of support I am looking at for a possible entry on the buy side. The first one comes in at 54.02-77. The second comes in at 52.89-53.15.
As long as price holds above one of these key zones, I’m looking to take my buy triggers in UA.
Options Volatility is a little high on UA. Selling UA May 52.50 puts with UA a point lower (near $54.40) might bring in some nice premium – and possibly get you long stock below $52. Or a limit order on a Bullish June 52.50 – May 57.50 time diagonal spread with a limit of $3.40 ish (now near $3.70) could be a good risk -reward to play the bounce.