Exchange Operator Stock Ready to Heat Up the Charts

ICE's 120-strike has been acting as a magnet lately

Aug 30, 2023 at 10:38 AM

nyse
ICE

Subscribers to Schaeffer's Weekend Trader options recommendation service received this ICE 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.

The shares of New York Stock Exchange (NYSE) operator Intercontinental Exchange Inc (NYSE:ICE) are breaking out of the downtrend that they’ve been in since early July. The equity also just cleared its 20-day moving average, which capped price action since its early August, post-earnings move. Adding to this bullish technical setup, ICE held its August 2023 and June 2023 peak level from the summer breakout, with additional support from its +10% year-to-date mark and its key 50-day trendline in place now.

WT Repost ICE

On the hourly chart, Intercontinental Exchange stock is breaking above the 200-unit moving average, with the rising 20- and 50-unit trendlines trading just below. This mean a confluence of moving averages are in place to support price action higher.

The 120-strike call could act as a magnet while retail traders are short for the strike, before falling off post-September OPEX. Options traders are pricing in low volatility expectations, too, per ICE’s Schaeffer’s Volatility Index (SVI) of 16%, which ranks higher than just 12% of reading from the past 12 months.

Our recommended December call has a leverage ratio of 8.7 and will double on an 11.7% pop in the underlying security.

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