Q2 STOCKS TO BUY

WDC Stock Trades Near Key Levels Before Big Month

WDC stock has been great in December

Nov 29, 2019 at 11:26 AM
facebook X logo linkedin


Western Digital Corp (NASDAQ:WDC) just showed up on our list of best stocks to buy for December, averaging a gain of 5.9% during the month over the past 10 years, closing higher 80% of the time, thanks to data from Schaeffer's Senior Quantitative Analyst Rocky White. What's interesting is that these seasonal tailwinds come as WDC stock trades just below the 200-day moving average.

The stock moved back to the closely watched trendline earlier this month, and appears to be on the verge of breaking out above not only that trendline, but the round-number $50 level. At last check, the shares were trading at $50.24, putting their year-to-date gain at around 36%.

wdc stock nov 29x

Options traders are in a strong position to benefit from another December gain for WDC. For instance, the stock's Schaeffer's put/call open interest ratio (SOIR) comes in at 0.61, ranking in just the 10th annual percentile. This tells us that near-term traders are unusually call-heavy. This is mostly due to the setup in the January series, which holds peak open interest overall at the 55 and 65 calls, while the January 2020 60-strike call is also home to notable open interest.

Actually, it still looks like a great time to speculate on Western Digital, since its Schaeffer's Volatility Index (SVI) of 37% ranks in the 11th annual percentile, showing very low volatility expectations at the moment. To take a look at one contract in particular for those expecting another WDC rally, the December 52 call has an ask price of $1.28, meaning a call buyer would begin to profit on a move above breakeven at $53.18 (strike plus premium paid), representing a rise of 5.9% from the shares' current spot.

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter