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Options Play $YUMC

Yum China Holdings, Inc. operates as a restaurant company in China. The company operates primarily through KFC and Pizza Hut Casual Dining segments. It operates approximately 7,500 restaurants in approximately 1,100 cities. YUMC reports earnings on July 5th, 2017 let us look at a strategy to capitalize on the earnings report.

$YUMC Technicals

Technically, the chart looks phenomenal! From the Dynamic Trend Indicator (available on Alphashark.com or email [e-mail] for link) YUMC meets all the criteria for a long or if already long stay with the trend. The multiple time frame analysis confirms positive momentum with price above the wave. Overhead resistance is at 42.12 which YUMC is currently on the path to new highs. Usually when a stock is approaching new highs weak hands will try to short it leading to a breakout on volume to new highs as the shorts will have to cover. Remember, we want to be strong hands as smart traders and not fight the trend!

As of June 29th, 2017, YUMC is trading at 38.70 with the expected move for July option expiration is $3.00 I can find the expected move by adding the ATM straddle for the week of expiration. Therefore, if I add 38.70 + 3.00= 41.70 as an upside target for an options play expiring on July expiration.

Get the Chart and Full Options trade Idea for $YUMC HERE >>>>