It might be time to get long Quest Diagnostics (DGX) as the healthcare company is breaking major resistance levels. The positive trends have been ongoing for a couple weeks and after hitting a low on May 23rd at $57 dollars, DGX rallied up to a high of $62.42 before selling off slightly to its current level of $61.40.
The long-term trend also suggests a continued rise in price as it has come close to its all time high, usually a positive signal for further gains. DGX is trading well above the cloud and is forecast to continue its rise. YTD the stock has outperformed the raging bull market, up 15.29%.
The Trade: Buying the DGX July 65 Calls for $.60
Risk: $160 per 1 lot
Targets: Sell 25% at $.75, Sell 25% at $.90, Sell 25% at $1.10, Sell 25% at $1.30,
Greeks of this Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long
Andrew Keene
KeeneOnTheMarket.com
