Buy Alert: February 17, 2015
Buy Alert: February 17, 2015
Trade Details
Buy Overstock.com (OSTK) March 21st 22.50 Calls for $1.45 or better (lower)
Why?
OSTK is an online retailer, similar to Amazon.com (AMZN), but much smaller (although, the company does generate about $1.5 billion in revenue per year). Like AMZN, the company recently posted positive earnings. OSTK also has a large amount of cash on hand. The stock has been trading sideways for most of the year and I believe it’s due for an upside breakout.
We’re going to buy March options. Conservative investors can take profits at $24.50. Aggressive investors can hold up to $26.50. For risk control, conservative traders should exit at $20, while more aggressive traders can hold down to $18.
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Category: OTW Buy Alerts
