MS 0.00%↑ is having a strong week thus far, and is at an interesting junction ahead of earnings on 7/16. After briefly making new 52 week highs in May, the stock retreated to a familiar consolidation zone, then bounced. Now sitting above AVWAP levels from the pivot point associated with those recent highs, it’s worth monitoring whether buyers are indeed reclaiming control.
The stock is still 10ish percentage points from its all-time high, which was achieved in February 2022. Long dated options are priced pretty reasonably - you can speculate on a LEAP maturing in June 2025 at the prior all-time high of $110 for just $5.50 at time of this post. That’s how I’m playing it for now. If this weeks momentum doesn’t continue, I’ll likely write calls against the position to reduce my cost basis on the trade.
