We’ve been on the sidelines this week just watching the market fumble and recover, only to fumble and recover some more…
It’s a never-ending game of incessant volatility, as fears of China continue.
That doesn’t mean there aren’t opportunities, though. While we continue to hold all open positions, we’re adding call options on Aflac (AFL) as the stock becomes incredibly oversold at MACD (at -1.373) and RSI (which is recovering from an oversold 30-line).
The last time MACD was this low was mid-2011 right before the stock ran from $30 to $45 in two months.
We don’t expect for this oversold condition to last much longer. In fact, we’d like to see a push to at least $62 near-term. There are two ways to trade the opportunity. One, you can buy just the underlying stock up to $60 and / or buy to open the AFL January 2016 57.50 call up to $3.50 and / or the AFL January 2016 60 call up to $2.
We’re working on more opportunities as we speak. Until next time, take good care.
Ian L. Cooper
Rapid Retirement System