Buy Alert: July 3, 2014
Buy Alert: July 3, 2014
Trade Details
Buy Franco-Nevada (FNV) August $55 Puts for $1.60 or better
Why?
Let’s get in one more trade before the July 4th holiday!
Last time out, we purchased calls on AG because of the rally in precious metals. At the time, AG was undervalued. However, some precious metals companies got overheated too quickly. One such company is FNV.
FNV is right near its 52-week high and well above its 50-day and 200-day moving average. This gold-focused royalty company got a boost when it recently entered a new gold stream deal. However, as the euphoria wears off, the stock should regress to its mean.
Let’s grab puts on FNV here. We’re going to pay up a little bit for these options, but I want the extra time for this trade to develop.
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Category: OTW Buy Alerts