Louis Navellier Announces Bold New Income Project

Louis Navellier just unveiled a radical new discovery — a way for Americans to earn 28-times more income than even the highest dividend-paying blue chip stocks.

Bag Big Profits with Michael Kors Holdings Ltd (KORS) Stock

This KORS stock play offers triple-digit returns

With stocks continuing to skirt the stratosphere, you would think it would be challenging to find low-risk entries for new bullish plays. After all, the S&P 500 has risen virtually uninterrupted for three weeks. But fortunately, a few strong trending stocks like Michael Kors Holdings Ltd (NYSE:KORS) have quietly retreated to support. Indeed, KORS stock is a rousing buy here.

Bag Big Profits with Michael Kors Holdings Ltd (KORS) Stock

Though its history is one plagued by outsized earnings gaps, Michael Kors has cobbled together quite the quality uptrend in recent months. Since bottoming in late May after a disappointing quarterly report, the stock has rallied 47%.

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Source: OptionsAnalytix

The rise is pulling the 20-day and 50-day moving averages higher, but in an impressive feat of strength, we’ve actually seen the sluggish 200-day moving average turn northward for the first time in over a year.

The dominance of buyers has also been on full display in the volume indicator. Ever since the early-August price jump, we’ve seen nary a whimper of distribution.

At the same time, accumulation days continue to show up, with the latest arriving yesterday.

And speaking of yesterday, the rebound off of the 20-day moving average is signaling that KORS is ready to begin rallying anew.

The KORS Trade

To capitalize on a run to $50, buy the Nov $47.50/$50 bull call spread for $1. The position consists of buying to open the Nov $47.50 call while selling to open the Nov $50 call. If the stock fails to launch, your risk is limited to the initial $1 cost.

If KORS can muster the strength to rise above $50 over the next month your potential reward is $1.50 which means this spread offers a 150% return.

To minimize the damage if the stock sours from here, consider placing a stop loss below $46.25.

As of this writing, Tyler Craig didn’t hold positions in any of the aforementioned securities. Want to learn how to master the art of option selling for high-probability cash flow? Check out Tyler’s recently released video series through Tackle Trading on how to systematically sell iron condors for monthly income.

Article printed from InvestorPlace Media, https://investorplace.com/2017/10/bag-big-profits-with-michael-kors-holdings-ltd-kors/.

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