Exchange Operator Stock Ready to Heat Up the Charts

ICE's 120-strike has been acting as a magnet lately

Aug 30, 2023 at 10:38 AM

nyse
ICE

Subscribers to Schaeffer's Weekend Trader options recommendation service received this ICE 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.

The shares of New York Stock Exchange (NYSE) operator Intercontinental Exchange Inc (NYSE:ICE) are breaking out of the downtrend that they’ve been in since early July. The equity also just cleared its 20-day moving average, which capped price action since its early August, post-earnings move. Adding to this bullish technical setup, ICE held its August 2023 and June 2023 peak level from the summer breakout, with additional support from its +10% year-to-date mark and its key 50-day trendline in place now.

WT Repost ICE

On the hourly chart, Intercontinental Exchange stock is breaking above the 200-unit moving average, with the rising 20- and 50-unit trendlines trading just below. This mean a confluence of moving averages are in place to support price action higher.

The 120-strike call could act as a magnet while retail traders are short for the strike, before falling off post-September OPEX. Options traders are pricing in low volatility expectations, too, per ICE’s Schaeffer’s Volatility Index (SVI) of 16%, which ranks higher than just 12% of reading from the past 12 months.

Our recommended December call has a leverage ratio of 8.7 and will double on an 11.7% pop in the underlying security.

Follow @Schaeffers

Are You Ready for AI's Potential Supercycle Phase?
Amazon's Jeff Bezos surprised investors when he revealed that one emerging technology is the key to Amazon's future success... This technology could be worth $80 trillion by 2030. Learn more and join Motley Fool's Stock Advisor for 50% off!

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.