ECA Position

I started a position in ECA today. I bought the Aug 32 calls @ .30 this am as depicted in the side bar ticker provided by Stocktwits. When I purchased these I had witnessed some accumulation in the name and also the 30 day Implied Volatility was below 30 with a 20 day Historic Volatility value of 33.

There is a downtrend in this name that is still intact, however I found that $30 seemed to be a good area of support for the time being and also noticed an inverse H&S pattern on the 30 day/ 30 minute chart. Understanding that there is only 16 days left to expiration, I shaved 1/2 the position off @ .45 later in the day and am looking for ECA to get a continued push up to 31.90 if it can clear the neckline on the inverse H&S that comes in at 31.50

With Oil prices north of $82 and the dollar sliding about 10% in the last 2 months coming to rest at the 200 SMA, I thought ECA would be a good Basic Material play for a short term push at a minimum. If 31.50 gets taken out I will look for 31.90 followed by the 50 MA at 32.05 and possibly a push up to the downtrend line around 32.25.

Break even at expiration in this position is 32.30. I do not plan on holding it all the way till expiration. I have shaved 1/2 the position and will look to take some more off into strength.

Depicted below is a daily chart and a 30 minute chart provided by Think or Swim

ECA daily


Notice the short term bottom at $30 and the green down trending line as discussed above

ECA 30 minute


Notice the Inverted H&S and resistance at the 31.50 level as discussed above


Trade well,
Pete