Buy Alert: December 2, 2015

| December 2, 2015

Buy Alert:  December 2, 2015

 

Trade Details

Buy Yelp (YELP) January 15th 29 Puts for $1.50 or better (lower)

 

Why?

I’m mostly bullish on the overall market heading into 2016, but we do have some event risk and I think it’s important to have at least one put position in the portfolio.  Moreover, YELP is one of those companies which regularly becomes overvalued and tends to come crashing back down to earth.  With the stock trading at over 3,300x projected earnings, now is a great time to buy puts.

We’re going to buy January puts.  Conservative investors can take profits at $27.50.  Aggressive investors can hold up to $25.  For risk control, conservative traders should exit at $35, while more aggressive traders can hold to $37.

 

 Recent Activity

Yelp

 

Category: OTW Buy Alerts