6 Bullish Breakouts for Swing Traders, Income Investors

Market may be ready for a correction after big gains; these breakout stocks should do better than weaker stocks during dip

By Donald E. L. Johnson

Cautious Speculator

• Five stocks and one ETF break out on point and figure charts.

• They may appeal to swing traders and income investors.

• Investors could sell puts or covered calls on these stocks.

Five stocks and one ETF are breaking out on point and figure charts.

They are shown below. Source: StockCharts.com.

Swing traders may buy these stocks with short 3% to 5% stop losses. They could sell Dec. 16 puts at strikes with 5% to 10% margins of safety. Or they could buy the stocks and sell weekly or Dec. 16 covered calls to generate income.

LINKs:

Home Page. See previous articles on other trades, stocks and watch lists. If you read several of these articles, you’ll learn how my strategy is meant to work. No guarantees. Links to useful web sites are on the lower right corner of the home page. Scroll down.

Selling in The Money Covered Calls Can Yield Big Annual Returns on Risk. By Donald E. L. Johnson

20 Ideas for Adjusting Your Stock and Bond Portfolio, by Christina Lourosa-Ricardo.

How to Beat Inflation Tax, Bear Market Tax With Dividend Stocks, Covered Calls, Cash Secured Puts, by Donald E. L. Johnson.

Wars Breed Inflation, Rising Interest Rates, Market Turmoil, By Donald E. L. Johnson.

Ways to use StockRover.com to analyze stocks

Calls vs Puts Options: What’s the Difference?

How to trade the wheel.

A video on how to place options trades on Think or Swim.

Beware. Like all investing, trading stocks and options is risky. I’m an active private speculator who trades covered calls and sells puts on stocks for my accounts. I am not a professional analyst nor a financial advisor. I don't take and won't take responsibility for how other people trade. This article is for educational purposes only. It is not advice. The data presented looked accurate at publication time except for intra-day fluctuations, but I can’t guarantee the accuracy. Traders should do their due diligence. I don’t have positions in any of these equities. I reserve the right to trade any of the listed stocks and options at any time. I receive no compensation for producing this content nor for any links.