JinkoSolar Holding Co. Ltd. stock trades under the ticker JKS & has recently shown very strong technicals.
Closing at $54.96 on 10/8/2020 after a slight price pullback, there look to be opportunities trading JKS stock options.
In anticipation of more of a price pullback, the slightly in-the-money $55 puts look attractive, as the next lowest level is $50, which would require a ~7% drop to become in-the-money.
The $55 puts expiring on 10/16 have a delta of -.047, while the $60 put’s delta is -0.67 & the $65 put’s delta is -0.82.
For Calls, I would be looking out to the December 18 expiration, at either the $50 calls which are already in-the-money and or the $55 calls, as once they become in-the-money the stock should have some decent momentum for growth.
In this instance, I would buy them separately based on the charts, as the call option decay may be exaggerated by election uncertainty and volatility.
JKS Stock Price: $54.96
10 Day Moving-Average: $42.41
50 Day Moving-Average: $26.27
200 Day Moving-Average: $20.77
RSI: 92
The RSI of 92 is high, and should even itself out as JinkoSolar Holding Co LTD’s stock establishes a new trading range, at which time entering the call options outlined above would be beneficial.
I’ll be looking at the options outlined above in the coming days & weeks.
*** I DO NOT OWN SHARES OF JKS STOCK ***
