Buy Alert: April 1, 2016

| April 1, 2016

Buy Alert:  April 1, 2016

 

Trade Details

Buy H & R Block (HRB) May 20th 27 Calls for $0.70 or better (lower)

 

Why?

With the utter lack of market direction the past week or so, it certainly makes it more difficult to find a good long options trade to make.  On the other hand, options are cheap in general right now.  In honor of Tax Day coming up, we’re going to buy calls in the biggest tax prep shop in the country, HRB.  The stock looks very cheap here and is at 52-week lows… in other words, there’s plenty of upside.

We’re going to buy May calls.  Conservative investors can take profits at $28.  Aggressive investors can hold up to $30.  For risk control, conservative traders should exit at $25, while more aggressive traders can hold down to $24.

 

 Recent Activity

H & R Block

 

Category: OTW Buy Alerts