It’s been an “interesting” market.
The latest 230-point move is because of Janet Yellen.
But there’s no telling if the move will last. Over the last week, the Dow has sunk and rallied hundreds of points. It’s wreaked havoc on the Forgotten Profits portfolio, too. After closing quite a few winners over the last few months, we do have positions that are down.
In fact, we’re removing the Electronic Arts (EA) and AT&T ( T) put options from the portfolio today. However, we are replacing with a new trade on Coke (KO).
After falling from $43 resistance, KO just found historical support at $40 a share. I strongly believe the stock could rally well off this low. RSI and MACD are both oversold and ready to reverse off lows.
Consider buying to open the KO May 2015 40 call up to $1.80 and/or the KO May 41 call up to $1.35.
Ian L. Cooper
Forgotten Profits