Buy Alert: May 20, 2016

| May 20, 2016

Buy Alert:  May 20, 2016

 

Trade Details

Buy Foot Locker (FL) June 17th 57.50 Calls for $0.80 or better (lower)

 

Why?

FL missed earnings today, but the reaction by the market was far more extreme than the news deserved.  Retail spending has actually been trending higher, and the athletic apparel/shoe giant has the potential to see growth in the coming months.  Meanwhile, it won’t take long for savvy investors to realize that FL is a good value at current levels.

We’re going to buy June calls.  Conservative investors can take profits at $58.  Aggressive investors can hold up to $60.  For risk control, conservative traders should exit at $53, while more aggressive traders can hold down to $51.

 

Recent Activity

Foot Locker

 

Category: OTW Buy Alerts