Buy Alert: December 30, 2014

| December 30, 2014

Buy Alert:  December 30, 2014


Trade Details

Buy Aeropostale (ARO) February 21st 2.5 Calls for $0.35 or better (lower)



ARO is another one of those teen clothing chains that has struggled in recent years. However, the CEO just stepped down with the company in desperate need of new leadership. Meanwhile, the company has mostly strong fundamentals and looks extremely cheap from a valuation perspective. Sales should also get a nice bump from the holidays and cheap gasoline.

We’re going to buy February options. Conservative investors can take profits at $3.00. Aggressive investors can hold up to $4.00. For risk control, conservative traders should exit at $2.10, while more aggressive traders can hold down to $1.75.


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