Many investors have no idea how options works. At InvestorPlace, we believe that you should know the difference between a put and a call. Our financial analysts will show you which stocks are ripe for swing trades, how to position your portfolio to minimize your risk, and what are the top stocks to trade this week.
Today, I’m recommending a bullish trade on The Mosaic Company (NYSE:MOS), which produces concentrated phosphate and potash crop nutrients. My indicators are still giving sell signals for the fifth week in a row, which is quite unusual and not a good sign for the bulls. The reason behind those sell signals is that we are in what I would call a split market. Looking at the New York Stock Exchange (NYSE), the ratio of declining issues to advancing issues was 3:1, meaning that for every three stocks moving lower, there was only one stock moving higher.
Don’t turn a blind eye to the risk in Alibaba stock, but that shouldn’t stop bullish BABA stock investors from using the options market to make their move.
COP stock had an inside day yesterday, meaning that the entire price range fell within the price range of the previous day. This is many times a reliable indication that the trend may be coming to an end.
Don’t let the market spook you, take advantage of continued upside and other seasonal niceties with a well-placed options spread as NVDA stock breaks out.
