Range Resources RRC Stock & Option Trade Ideas

RRC stock data analysis:

The Relative Strength Index (RSI) for RRC on 2024-05-31 is 57.60. An RSI above 50 indicates bullish momentum.

The Moving Average Convergence Divergence (MACD) shows an upward trend with the MACD line consistently above the Signal line.

The Bollinger Bands indicate an upward trend as the stock price is consistently trading above the middle band.

Overall, based on the technical indicators, RRC is currently exhibiting bullish signals.

Potential trading strategies for RRC:

1. Stock Trade: Considering the bullish signals, a potential long stock position can be initiated by buying RRC shares at the current market price of $36.91 with a stop-loss set at $35.50 to manage downside risk.

2. Covered Call Option Trade: For investors looking to generate additional income, a covered call strategy can be implemented. Sell-to-open RRC call options with a strike price of $38 and an expiration date around 1-2 months out. This strategy allows investors to earn premium income while holding the stock.

3. Bull Call Spread Option Trade: Traders expecting a moderate upward movement can consider a bull call spread. Buy-to-open RRC call options with a lower strike price (e.g., $36) and simultaneously sell-to-open call options with a higher strike price (e.g., $38). This strategy limits both potential gains and losses while benefiting from a bullish move.