We’ve opened a  bullish trade on iRobot Corp. (IRBT), which is actually a very interesting company. iRobot reported earnings with outperformance in virtually every category in its latest announcement. However, the outlook was slightly dim, which, in the current market environment, is not a surprise. As you may know, iRobot produces robot vacuums and mops. The “Roomba” vacuum is probably its most well-known product.

We have been monitoring the Google (GOOGL) and Amazon (AMZN) trends for signs of weakness, but things are actually continuing to improve. With accommodative monetary policy (for now) and a stronger-than-expected housing market in July, we like calls on iRobot while it is at long-term support.

‘Buy to open’ the IRBT September 31 Calls (IRBT150918C00031000) for a maximum price of $1.45.

We will, however, watch the stock very carefully in the near term. If resistance on the S&P 500 holds, iRobot could head lower again. However, for now, we recommend the position for a short-term play on increased consumer spending.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.

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