Dish Network: Ready To Beam Higher

DISH Network, (DISH), broadcasts satellite TV through out the United States. There chart has been showing consolidation over the last two months but it now is showing signals that it may be ready to beam itself higher in your portfolio. The chart below shows a firm dish building with support of the 100 and 200 day Simple Moving Averages (SMA) below it. A break over 41 triggers a Measured Move higher to the 45-46 area. The Relative Strength Index (RSI) is bullish and starting to trend slowly higher with a Moving Average Convergence Divergence indicator (MACD) that is turning. The MACD is the key to this picture. As I write this a August 41/45 Call Spread can be had for only $1.40 for a 3.5:1 reward to risk ratio. If that is

DISH Network, DISH


not enough then consider selling the August 36 Puts for 75 cents to bring the cost down to 65 cents and the reward to risk on a hold over the 200 day SMA of 7.7:1. Too much downside risk? Sell the July/August 37 Put Calendar for a 55 cent credit cutting your cost to 85 cents on the Call Spread and giving protection through the July Expiry, and above the 100 day SMA after that. Best to wait for the trigger over 41 to enter. After the close Wednesday the company backed out of a deal with Clearwire, (CLWR), but it is not certain how the stock will react yet.

Buy August 41/45 Call Spread: Buy the August 41 Call and Sell the August 45 Call, no margin used Sell July/August 37 Put Calendar: Buy the July 37 Put and sell the August 37 Put, either requires margin against the August 37 Put or treated as a cash covered put for IRA’s (full cost reserved).

Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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