Buy Alert: January 6, 2016

| January 6, 2016

Buy Alert:  January 6, 2016

 

Trade Details

Buy Cirrus Logic (CRUS) February 19th 30 Calls for $1.50 or better (lower)

 

Why?

Welcome back! We’re getting the year started off with a somewhat ominous beginning. Stocks have gotten hit hard due to concerns over China’s economy, among other things. Apple (AAPL) has dropped even further on rumors of a 30% production cut on recent iPhone models. iPhone suppliers, like CRUS, are also dropping on the news. However, CRUS has become oversold and looks like a great buy right here.

We’re going to buy February calls. Conservative investors can take profits at $30. Aggressive investors can hold up to $32. For risk control, conservative traders should exit at $26, while more aggressive traders can hold down to $24. Clearly, we’re looking for a relatively quick move back up to $30 in order for loss of time value to not be a big factor in the price of the options.

 

 Recent Activity

Cirrus Logic

 

Category: OTW Buy Alerts