Navigating the Tech Wave Amid Market Turbulence with NOW
Kia ora Tiger traders. The stock, ServiceNow Inc. (NOW), faced a significant sell-off after hitting $800 and is now trending downward, currently trading at $741.70. Keep an eye on the $744-$750 range; if it doesn’t rebound from this level, it might head towards $723.
Here are some options strategies you might consider in this situation:
1. Put Options: If you anticipate further decline, buying put options on NOW could profit from the downward movement. This allows you to benefit as the stock price falls.
2. Protective Puts: If you hold NOW shares and want to hedge against further losses, purchasing protective puts can provide downside protection while allowing you to maintain your long position.
3. Bear Put Spread: To limit risk and cost, consider a bear put spread on NOW. This involves buying a put option at a higher strike price and selling another put at a lower strike price, profiting from the stock's decline within this range.
4. Iron Condor: If you expect NOW to remain within a certain range, an iron condor can be a good strategy. This involves selling a lower strike put and a higher strike call while buying an even lower strike put and an even higher strike call, benefiting from low volatility.
5. Covered Calls: If you own NOW stock and expect it to stay relatively stable or rise slightly, selling covered calls can generate additional income from the premium received.
Fibonacci Levels:
- 0%: $527.24
- 23.6%: $595.23
- 38.2%: $637.29
- 50%: $671.28
- 61.8%: $705.27
- 100%: $815.32
In the latest market news, heightened volatility is influenced by rising inflation and geopolitical tensions. Tech stocks, including NOW, are under close scrutiny for potential recovery signals, as they often lead market rebounds.
Fun Fact: Did you know that the New York Stock Exchange, founded in 1792, started under a buttonwood tree on Wall Street where 24 stockbrokers and merchants signed the Buttonwood Agreement?
Happy trading ahead! Cheers, BC 🍀
@TigerStars @MillionaireTiger @CaptainTiger @TigerWire @Daily_Discussion @Tiger_comments @Tiger_Wealth @Tiger_chat @TigerGPT How can I effectively use Fibonacci retracement levels to optimise my entry and exit points for trading ServiceNow Inc. (NOW) amidst current market volatility and historical support and resistance levels?
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Based on the analysis of ServiceNow Inc. (NOW), here are the key points to consider for optimizing your entry and exit points using Fibonacci retracement levels:
Long-term Valuation:
Analyst Target Price: According to 37 analysts, the mean target price for NOW is $853.58, with a low estimate of $640.00 and a high estimate of $942.00.
Analyst Recommendation: Out of the 37 analysts, 13 recommend buying, 24 recommend a strong buy, 3 recommend holding, and 1 recommends selling.
Short-term Valuation:
Support and Resistance Levels: The support price for NOW is $656.99, and the resistance price is $770.99.
Stock Price: As of the latest data, NOW is trading at $741.96.
Capital Flow Analysis:
Capital Flow Data (5-day): The capital flow for NOW has been fluctuating, with both inflows and outflows observed over the past five days.
Capital Flow Data (1-day): On the latest day, there was a big inflow of $6.60 million, a median inflow of $9.22 million, and a small inflow of $183.06 million. Additionally, there was a big outflow of $38.44 million, a median outflow of $13.08 million, and a small outflow of $206.85 million.
Based on the above information, you can consider the following strategies:
If you anticipate further decline, buying put options on NOW could profit from the downward movement.
If you hold NOW shares and want to hedge against further losses, purchasing protective puts can provide downside protection while allowing you to maintain your long position.
To limit risk and cost, consider a bear put spread on NOW, which involves buying a put option at a higher strike price and selling another put at a lower strike price.
If you expect NOW to remain within a certain range, an iron condor strategy can be considered.
Selling covered calls can generate additional income from the premium received if you own NOW stock and expect it to stay relatively stable or rise slightly.
Please note that the above suggestions are for reference purposes only and should not be considered as investment advice. It is essential to conduct thorough research and consult with a financial advisor before making any investment decisions.