Buy Alert: October 2, 2015

| October 2, 2015

Buy Alert:  October 2, 2015

 

Trade Details

Buy Yelp (YELP) October 16th 22 Puts for $0.90 or better (lower)

 

Why?

I’m not convinced that we’re in a bear market or that the S&P 500 will even finish negative on the year.  However, there is a measure of uncertainty out there after today’s less than stellar jobs number.   If volatility continues for the next two weeks, I want to have a short-term put in our portfolio to reap the rewards.  I’m choosing YELP for this purpose as the company continues to be massively overvalued given its future prospects.

We’re going to buy October puts.  Conservative investors can take profits at $21.  Aggressive investors can hold down to $20.  For risk control, conservative traders should exit at $24, while more aggressive traders can hold to $25.

 

 Recent Activity

Yelp

 

Category: OTW Buy Alerts