Markets finish week down after bouncing on Bannon's exit >>> READ MORE

Trade of the Day: Buckle Inc (BKE)

At this point, the best bet is a bearish one

   

To receive further updates on this Buckle Inc (NYSE:BKE) 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

The action we’ve seen this week is typical for August, which has historically been the second-worst month of the year for the market. However, I don’t believe that the geopolitical tensions between the United States and North Korea are entirely responsible for the selloff.

In fact, the market has been unraveling now for several weeks, being that the only leaders have been some of the large-cap stocks in the Dow Jones. Market breadth has been deteriorating, and the S&P 500 has been underperforming, suggesting that we’re in for a longer period of corrective action going forward.

In addition, earnings have not been coming in as strong over the past week, whereas they were crossing the tape with much more bullish readings earlier this earnings season. Over the next two months or so, I think the market is in for a slow, choppy decline of 5%-10%.

In this environment, I’m looking to a particularly troubled sector for bearish profits: retail.

Buy to open the Buckle Inc (NYSE:BKE) Dec 12.50 Puts (BKE171215P00012500) at $0.70 or lower.

Follow our Facebook page to receive each Trade of the Day direct to your News Feed — and join the conversation.

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.


Article printed from InvestorPlace Media, http://investorplace.com/2017/08/trade-of-the-day-buckle-inc-bke/.

©2017 InvestorPlace Media, LLC