Goodyear Tire & Rubber (NASDAQ:GT), the Akron, Ohio, based tire company, is best known for its blimp. Always floating over sporting events. The video above shows the newest one on its maiden test flight a couple of months ago. But the stock price is floating along as well. After rising from May 2013 until March this year, it has been moving sideways between 24 and 28. The broad picture is of an expanding wedge with the price at the top. And if it can get through the top you can look for a 4 move up to 32. But the shorter picture shows rising trend support (blue line) with higher highs and higher lows. A good short term trend higher, but maybe rolling over right now. There are several of ways to participate in this set up.
1. Sell short (or buy Puts) against a stop at the top of the range looking for a short term move lower to the trend line or lower.
2. Sell Puts with a 26 Strike on anticipation of the trend line (and 100 day SMA holding) for an entry lower. You can do this in 1/3 or half size if less confident of a stop at 26.
3. Buy the stock in 1/2 size and sell a 26/29 strangle against it. This gets you to full size if it reaches 26 and acts as a covered call if it goes up.
4. Wait to see if 26 holds and if not then buy a 26/22 Put Spread, looking for a retracement to the bottom of the triangle.
Disclosure: 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.