This week it’s a split story in telecom stocks with some obvious winners and losers. For example, Echostar (NASDAQ:SATS), the provider of Dish Network’s satellite fleet, is one of the former. It’s trending down with no reversal in sight.
Although these stocks are looking bullish, there are only a few stocks every week that give signals strong enough to make them a candidate for profitable options trading. Ken Trester has looked through the list of Power Stocks and picked out the most volatile and liquid trades. He’s also taken stock price movement and theoretical option values into account.
And that research has yielded a retail name that stands out among the rest for options trading: JDSU.
Buy JDS Uniphase Jun 17 call options at 70 cents or lower, when the stock price is around $15.30. After entry, take profits if the stock price hits $16.70, when the option price is around $1.30. Exit if the stock price closes below $14.60 or if the option price falls to 50 cents.
If possible pay less than the recommended value. By doing so you’ll save money and make more.
InvestorPlace advisor Ken Trester is editor of the popular Maximum Options program. 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 Maximum Options today for 2 months for only $99.