Buy Alert: March 31, 2015

Marcus Haber | March 31, 2015

Buy Alert: March 31, 2015

Trade Details

Buy Cree (CREE) May 16^th 37.50 Calls for $1.65 or better (lower)

Why?

Cree is a leader in LED products, such as the increasingly popular LED light bulb. The stock got hit during the broad tech selloff last week, but there was no stock specific news driving the decline. The company is a market leader, has a solid record of growth, and has a ton of cash on hand. It’s due for a rebound.

We’re going to buy May calls. Conservative investors can take profits at $40. Aggressive investors can hold up to $45. For risk control, conservative traders should exit at $32.50, while more aggressive traders can hold down to $30.