Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

4 Trade Ideas For Dunkin Brands Group

Published 02/25/2019, 07:18 AM
Updated 05/14/2017, 06:45 AM

Dunkin Brands Group Inc (NASDAQ:DNKN), started higher in April 2018 and reached a top in September. It had a mild drop from there and consolidated in a box for 3 months before another move lower. That retraced 78.6% of the up move into the end of December. Since then it has driven higher and is creating higher lows against resistance. Friday it ended pushing over resistance.

The RSI is pushing up into the bullish zone and the MACD is rising and positive, both supporting more upside. There is resistance at 71.75 then 73.50 before 75 and 77.25. Support lower comes at 70 and 68.50. Short interest is moderate at 6.4%. The stock pays a 2.09% dividend and it will begin trading ex-dividend on March 8th. The company is expected to report earnings next on April 24th.

The March options show large open interest at the 60 put strike and then again at the 75 and 80 call strikes. The April chain shows open interest just starting to build. The June options are the first to cover the next earnings report and they show the biggest open interest at the 70 strike on both the puts and calls.

Dunkin’ Brands, Ticker: $DNKN


Trade Ideas

  1. Buy the stock on a move over 71.75 with a stop at 70.
  2. Buy the stock on a move over 71.75 and add a March 70/67.50 Put Spread (60 cents) while selling the June 80 Calls (60 cents) to fund it.
  3. Buy the April/June 75 Call Calendar ($1.20) and sell the April 65 Put (50 cents).
  4. Buy the June 65/75/80 Call Spread Risk Reversal (35 cents).

Elsewhere look for Gold to possibly pause in its uptrend while Crude Oil resumes the path higher. The U.S. Dollar Index looks to continue to move sideways while U.S. Treasuries are consolidating at resistance. The Shanghai Composite and Emerging Markets are continuing their trends higher.

Volatility looks to remain very low keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts are looking a little extended but strong on the shorter timeframe, but remain very strong on the longer timeframe. Use this information as you prepare for the coming week and trade them well.

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.

Original post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.