Buy Alert: January 22, 2016

| January 22, 2016

Buy Alert:  January 22, 2016

 

Trade Details

Buy Shutterfly (SFLY) February 19th 40 Puts for $1.50 or better (lower)

 

Why?

It’s time to get some downside protection in our portfolio, and we’re having a nice up day in which to do so.  SFLY is an online photo management site catered towards retail clients.  There’s a lot of competition in this space, particularly in the mobile category.  The company is also showing a negative operating margin while trading at a sky-high valuation.

Let’s buy February puts.  Conservative investors can take profits at $38.  Aggressive investors can hold to $36.  For risk control, conservative traders should exit at $44, while more aggressive traders can hold to $46.

 

 Recent Activity

Shutterfly

 

Category: OTW Buy Alerts