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NextEra Energy Stock Has More Room to Run

Shares are breaking above a long-term resistance level

Sep 20, 2024 at 1:00 PM
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Subscribers to Schaeffer's Weekend Trader options recommendation service received this NEE 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.

Utility stock NextEra Energy Inc (NYSE:NEE) just hit a 52-week high after breaking above resistance just above the 80 strike that has been in place since May. Plus, the ascending 20-day moving average now sits at this former level of pressure.
On the weekly chart, NEE just hit a weekly close above a trendline connecting weekly highs since the end of 2021. Plus, the equity took out heavy call open interest (OI) at the 80 strike that expires on Sept. 20, with September being the heaviest call open interest month.

Short interest hit an all-time high in May. And though there’s mostly been covering since then, there was a 15% build from July-August ahead of this week’s breakout that has fresh shorts underwater.

Our recommended January call has a leverage ratio of 7.1, and will double on a 14.8% rise in the underlying shares.
 

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