Trade Summary: April 3, 2017

| April 3, 2017

April 3, 2017

 

Trade Rationale

We mentioned in our last update the Trump rally had stalled.

Well, it’s official… it’s over.  In March, the markets closed lower, bringing to an end an amazing four month rally that had the markets setting new highs.

Is that the end of it?

Probably not.  Look, the markets are still strong and the economy is responding well… the rally will pick back up.  I think after the next round of earnings announcements come out, we’ll see life again in the bull.

But for now, we are in a soft spot.  The markets are down, and any bad news could push them lower… even further.

We’re going to grab some protective puts in the portfolio, just in case we get a big downdraft.

Note: Only two trades this week.

Here are the trade ideas…

 

Trade Details

#1) Buy Beazer Homes (BZH) August 18th $10 PUTS up to $0.77

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

Beazer Homes

#2) Buy KB Home (KBH) July 21st $18 PUTS up to $0.70

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

KB Home

 

Category: AOA Trade Summary

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