Buy Alert: April 15, 2015
Buy Alert: April 15, 2015
Trade Details
Buy Splunk (SPLK) May 15th 60 Puts for $1.65 or better (lower)
Why?
Our portfolio is heavily long-biased, so it’s time for us to take a downside position. SPLK is one of those Internet/tech stocks which tend to sell off right away as investors become risk averse. Whether it’s the unsustainable valuation or the sharply negative operating margin, investors jump ship in a hurry if the market gets rocky. The stock looks due for a pullback to the 200-day moving average.
We’re going to buy May puts. Conservative investors can take profits at $57.50. Aggressive investors can hold down to $55. For risk control, conservative traders should exit at $66, while more aggressive traders can hold to $70.
Recent Activity
Category: OTW Buy Alerts
