"Buy" Signal Flashing for Exchange Operator

ICE shares are below their year-to-date breakeven point

Managing Editor
Feb 21, 2019 at 2:21 PM
facebook X logo linkedin


Exchange operator Intercontinental Exchange Inc (NYSE:ICE) has struggled to take off so far in 2019, yet to break past its year-to-date breakeven level. However, if history is any guide, this could present an intriguing buying opportunity for ICE bulls. 

More specifically, Intercontinental Exchange stock is now trading within one standard deviation of its 320-day moving average. The last four times ICE pulled back to this moving average after a lengthy stretch above it, the equity was up 6.3%, on average, one month out, per data from Schaeffer's Senior Quantitative Analyst Rocky White. Further, returns were positive all four times.

At last check, ICE was up 0.5% to trade at $74.84, on track to snap a four-day skid. A move of similar magnitude would put the equity back near $80, an area not topped on a closing basis since an early-December slide. And just above there sits its Dec. 3 record high of $82.65. 

Daily Stock Chart ICE

There could be pessimism unwound in the options pits. The security's Schaeffer's put/call open interest ratio (SOIR) of 1.65 sits in the 84th percentile of its annual range. This suggests short-term options players have rarely been more put-heavy in the past year. 

Now may be a prime time for those looking to trade ICE's short-term trajectory to do so with options. It's Schaeffer's Volatility Index (SVI) of 16% ranks in the 11th annual percentile, meaning short-term options are relatively cheap at the moment, from a volatility perspective.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI