Pop Drop and Chop in LNG

[Steven Place]

Oil names continue to be hot, and I’m looking for continuation here.

This is a 10 min chart of LNG, after a strong breakout above 60, it’s been in a “flag” pattern with buyers stepping up at 65.50

As long as 65.50 (and a little lower) hold, I’ll play this to the long side.

Straight up stock works here, but the July 67.50 calls for 2.80 is a good bet, with a stop at 65.44

[Steven Place]

I held through my stop loss level (it helps to be away from the screen) and took a little bit more risk, and it is paying off now.

The stock is now running into resistance at 52-week highs, so I’m going to sell 1/2 of the position at 3.30 and sell the 70 calls against the second half for 2.10.

[Author]

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