Buy Alert: February 26, 2016

| February 26, 2016

Buy Alert:  February 26, 2016

 

Trade Details

Buy eBay (EBAY) April 15th 25 Calls for $0.78 or better (lower)

 

Why?

Consumer spending is actually doing a little better than expected as the low level of unemployment is finally starting to translate into purchases.  What better way to take advantage of this than buying into eBay?  What’s more, eBay competitor, Etsy (ETSY) posted a strong earnings surprise this past week.  It suggests that auction-related buying may be making a bit of a comeback.

We’re going to buy April calls.  Conservative investors can take profits at $25.50.  Aggressive investors can hold up to $27.  For risk control, conservative traders should exit at $22.50, while more aggressive traders can hold down to $21.50.

 

 Recent Activity

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Category: OTW Buy Alerts