The markets are still range-bound with a great deal of fear over rate hikes being priced in. It’s why we’ve asked that you reduce your overall portfolio exposure to the markets until we see some direction.
While we’ve enjoyed some impressive win streaks along the way, we do have some losers to close out, as well as a winner. Two losers we need to close today are the DECK June 80 and 77.50 calls. In the past, we’ve done explosively well with DECK, as you can see in our portfolio.
This time around, DECK wasn’t nice to us.
We continue to hold the MCD put, the AXP call, the QCOM put, the ERIC call, the PG call, and as of today we’re recommending that you sell to close half of the DIA July 182 put for gains. Hold the second half.
As for new trade ideas, consider Michael Kors (KORS).
The stock may have plummeted on same store sales weakness, but this is overkill. RSI, MACD and MFI are literally on the floor. When this happens, we typically see a quick bounce before resumption of downtrend.
Our goal is to buy a call option here, wait for that bounce from insanely oversold conditions and go home.
Consider buying to open the KORS July 2015 47.50 call up to $2.
Look to resume the win streaks we’ve enjoyed.
Ian L. Cooper
Forgotten Profits