Buy Alert: October 28, 2013
Buy Alert: October 28, 2013
Trade Details
Buy Symantec (SYMC) December $22 Calls $0.80 or better
Why?
Our recent strategy of buying options in less risky stocks has been paying off for us lately. That is, I’ve been focusing on stocks with cheaper at or near the money options. In this case, we’re looking at SYMC’s ATM calls.
Symantec, a leading antivirus software specialist, has been hit hard by an earnings miss. However, the poor results were not caused by the product or the industry. Instead, it was the aftereffects of a major reorganization effort inside the company.
Essentially, this sort of issue is typically short-term in nature. And, with the recent selloff, the stock looks underpriced both fundamentally and technically. We’re going to use this opportunity to get SYMC options for cheap, and we’re buying December options to give the trade plenty of time to work.
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Category: OTW Buy Alerts
