To receive further updates on this Fossil Group Inc (NASDAQ:FOSL) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of Power Options Weekly today.
For now the market rally looks like it will continue, as we’ve had a lot of crisis-type events recently that haven’t affected the market at all, and it also has a lot of underlying support
The so-called “FANG” (Facebook Inc (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX) and Alphabet Inc (NASDAQ:GOOGL)) stocks took a big hit last week, and the selling in those names returned yesterday as well.
However, I think the selloff in these big-cap tech names is more about investors taking profits rather than because of any bearishness on the sector as a whole. If the selling continues into next week, that capital may start to move into other sectors, such as financials and health care, but we’re not seeing too much rotation between sectors just yet.
There is one sector that has been particularly troubled, though, and that’s retail. So, to remain cautious and maintain some bearish exposure, today I’m recommending put options on Fossil Group Inc (NASDAQ:FOSL).
Buy to open the FOSL Sep 9 Puts at $0.95 (FOSL170915P00009000) or lower.
Follow our Facebook page to receive each Trade of the Day direct to your News Feed.
InvestorPlace advisor Ken Trester brings you Power Options Weekly, which delivers 5 new options trades and his latest trading advice to you each Friday. It’s the perfect ‘bridge’ between investing in ordinary stocks and the turbocharged world of options trading.
Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990. Try Power Options Weekly today and receive 2 weeks for the price of 1 for only $19.95.