EARN25

Outperforming Johnson Control Stock an Attractive Pick for Bulls

The security's short interest levels indicate bears may be holding onto losing positions

Jul 2, 2019 at 11:05 AM
facebook X logo linkedin


Johnson Controls International PLC (NYSE:JCI) has rallied to fresh highs, bringing its year-to-date gain to almost 40%. The shares recently pushed back former resistance at the $40 level, home to the year-over-year breakeven point, suggesting this breakout could have legs. As such, bulls could still have time to get behind the outperformer.

190628jci

Traders should also note that there is a large build-up in open interest on both the call and put side, which could bring this price point into focus in the near term – and a move to this level would mark a roughly 100% gain for our recommended call. Plus, put buying has picked up in recent weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), and similar trends in the past have corresponded to upside moves in the stock.

What’s more, short interest has roughly tripled in recent months to multi-year highs, meaning many bears are likely holding losing positions. Short covering could also help push JCI stock to new heights. Short-term options are relatively cheap at the moment, as well, according to the Schaeffer's Volatility Index (SVI) of 18%, which ranks in the low 12th annual percentile.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this JCI commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!