Consider these two higher risk trade opportunities.
Shares of Noodles & Company (NDLS) have been absolutely slaughtered since IPO. But each and every time NDLS gets this low on MACD or RSI, we see a quick bounce to the upside. We hope to do that again now with a very fast in and out trade. Get in, wait for bounce, and get out. That’s it.
With a -35% stop loss in place, buy to open the NDLS November 2014 22.50 calls up to $1.85.
Another trade with further potential upside is Red Robin Gourmet Burgers (RRGB). After gapping down from $65 to $54, it’s still massively oversold. MACD and RSI are also over-extended and need to revert to mean. When RSI gets this low, we typically see a bounce. The stock may have jumped $2.25 on Friday but we see further moves north.
With a -35% stop loss in place, buy to open the RRGB December 2014 60 calls up to $3.
We’ll talk again soon. Until then, take good care.