Trade Summary: April 17, 2017

| April 17, 2017

April 17, 2017

 

Trade Rationale

We’re six weeks into the market slide… and I don’t see it stopping.  Soon, we’ll be running into the “Sell in May” trade that many market timers live by.

We could see market softness well into the summer…

As you know, the consumer products will take a hit first, and one of the biggest ones to take a shot will be the automakers.

We’re already seeing weakness… and last week we closed out a trade where we expected a snapback rally.  

This is what we’re going to do… buy a number of PUT options on F and GM.  If the slide continues, we’ll see it hit harder here.

Note: Only two trades this week.

Here are the trade ideas…

 

Trade Details

#1) Buy Ford Motor Company (F) Sep 15th $11 PUTS up to $0.80

Since these are protective puts, we really want to see this stock move lower… no exit points, take profits on any market dip.

Ford Motor Company

#2) Buy General Motors (GM) Sep 15th $32 PUTS up to $1.80

Since these are protective puts, we really want to see this stock move lower… no exit points, take profits on any market dip.

General Motors

 

Category: AOA Trade Summary

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