Buy Alert: December 5, 2016

| December 5, 2016

Buy Alert:  December 5, 2016

 

Trade Details

Buy Smith & Wesson Holding Corporation (SWHC) March 17, 2017 $22 Calls for $1.65 or better (lower)

 

Why?

Smith and Wesson is going into a major transition.  They recently announced a shift from a purely firearms manufacturer to one focused on outdoor equipment and products.

This shift in focus for the company puts it in a great spot for growth and bigger profits.  

I believe you’ll see strong sales this holiday season, a growth in new products… and the potential for an acquisition with the refocus of the business. Any positive news from the company will push the stock higher and drive these options up.

The stock has been down recently, which gives us an opportunity to get these options at a low price.  We’re going to buy March calls so we can get the benefit of the entire shopping season.  Conservative investors can take profits at $25.  Aggressive investors can hold up to $27.  For risk control, conservative traders should exit at $19, while more aggressive traders can hold down to $18.

 

Recent Activity

Smith & Wesson

 

Category: OTW Buy Alerts