4 Naughty & Nice Holiday Options Trades

Make holiday gains that don’t go straight to your waist

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The Nice

The universe of nice holiday retailer options is a lot bigger this year, and that’s chiefly due to the aforementioned bump in sales we’ve seen so far. It’s also due to the bullish climate in stocks over the past couple of weeks. Still, it’s tricky narrowing down the best options plays for stocks embracing the holiday spirit.

One stock that comes near the top of the holiday list is Amazon.com (NASDAQ:AMZN). The premier online retailer continues to be a game-changer, and its new Kindle Fire sales are, well, en fuego. Options players looking to add some warmth to this winter season should wrap up the AMZN Jan 195 Calls.

If you want to take advantage of the general bullish cheer that Santa is likely to bring this year, then check out the SPDR S&P Retail ETF (NYSE:XRT). This Exchange-Traded Fund holds many of the biggest and best retailers out there, so if the sector trends higher this holiday season, buying calls on this ETF could bring investors a lot of yuletide cheer.

Check out the XRT Jan 55 Calls for the ultimate bullish play in this hustling-and-bustling sector. And don’t forget to leave out some cookies and milk (or other treats and spirits you think the big guy would like) to say thanks for the holiday gains that don’t end up on your waist!

Disclosure: At the time of publication, Jim Woods held no positions in any of the stocks mentioned in this article.

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Article printed from InvestorPlace Media, http://investorplace.com/2011/12/naughty-and-nice-holiday-options-trades-shld-gps-amzn-xrt/.

©2014 InvestorPlace Media, LLC

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