Buy Alert: November 24, 2015

| November 24, 2015

Buy Alert:  November 24, 2015

 

Trade Details

Buy Western Digital (WDC) December 18th 63.50 Calls for $1.45 or better (lower)

 

Why?

Quick Note:  There won’t be an update this Thursday due to the Thanksgiving holiday.  The next update will come out on the following Thursday.  There could be an additional trade beyond this one before the next update occurs, but it all depends on market conditions and available opportunities.

WDC is making headlines for its upcoming purchase of SanDisk (SNDK) for $19 billion.  The additional debt the company will take on is weighing on investors, along with slower sales.  However, WDC is nearing ridiculously cheap levels for a company with a ton of cash and good future prospects in the data storage space.  A rebound is coming.

We’re going to buy December calls.  Conservative investors can take profits at $65.  Aggressive investors can hold up to $67.50.  For risk control, conservative traders should exit at $59.50, while more aggressive traders can hold down to $57.

 

 Recent Activity

Western Digital

 

Category: OTW Buy Alerts