Trade of the Day: Fossil Group Inc (FOSL)

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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.

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Article printed from InvestorPlace Media, https://investorplace.com/2017/06/trade-of-the-day-fossil-group-inc-fosl/.

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