So far, so good…
Since we began issuing these special report trade ideas, most of the opportunites are beginning to move in our favor. The KORS January 50 calls have been one of the faster movers for us in recent weeks, as an example.
We also hold the BBY December 35 call with a slight gain. We hold the NSC December 95 call with a slight gain too. The WMT January 75 call is down at the moment. But given patience it should do very well. And in recent days, we opened a new position in the AMBA August 100 put and the TWTR January 37 call.
Trade #7: Zumiez (ZUMZ)
The underlying stock fell close to $6 on Friday on a Q2 earnings outlook disaster. But it’s an overreaction that we can profit from quickly. All we want to do is buy a call, and get out once the stock bounces from oversold MACD, RSI and MFI. Consider buying to open the ZUMZ August 2015 25 call up to $1.60.
As you can see in this chart, ZUMZ is no stranger to tough times. When it gapped down in late 2011, late 2012, and early 2014 and again now, we got the same technical support levels on MFI, RSI and MACD. We believe we’re about to see another bounce near-term. If so, we stand to make great money. Look at how well the stock ran up after previous gap downs.
Trade #8: AT&T (T) Short
We still hold a June 34 put on AT&T in Rapid Retirement, as a hedge against calls. We took gains of 106% and 56% on T July 33 calls, and gains of 53% and 29% on T January 32 calls.
But I’d like to reiterate a new short position here. The stock has become ridiculously over-extended, challenging historical resistance going back to May 2014. All of our technical indicators are pointing to downside from this point.
Consider buying to open the AT&T (T) August 2015 35 put up to $1.90.
Take good care…
Ian L. Cooper
Rapid Retirement System