Shares of Phillip Morris (PM) are challenging overhead resistance just above $85 a share. Since early 2013, the stock has failed at this point about eight times. I’m expecting more of the same this time.
RSI, MACD and MFI all tell us this stock is overbought… and ready to come down in a hurry. The best way to trade this technical set up is by buying to open the PM November 2015 95 put up to $2.50 and / or the PM December 2015 82.50 put up to $2. Either should work well.
Ian L. Cooper
Rapid Retirement System