Trade Summary: March 20, 2017

| March 20, 2017

March 20, 2017

 

Trade Rationale

The markets have taken a pause in their rapid rise to a new level.  A few weeks in and we’re holding well above the 20,000 mark on the Dow.  I see this stabilization and base forming as a big positive.

We’re setting up for another move… This time, I see a positive impact from the low unemployment numbers.  Better still, we had the Fed raise rates just last week, and the markets held tight to their range.

I’m liking the automotive plays right now…

I really like Tesla, but the stock is too richly priced… and the options are even more expensive.  Instead, we’ll focus on Ford (F) and General Motors (GM).

Note: Only two trades this week!

Here are the trade ideas…

 

Trade Details

#1) Buy Ford (F) Sep 15th $13 Calls up to $0.50

We want F to move higher… Profit exit points are $13.50 and $14.20.  Exit at $11.80 or $11.20 to conserve capital.

Ford

#2) Buy General Motors (GM) Sep 15th $39 Calls up to $1.45

Take profits if GM trades above $39.50, or for aggressive traders, $41.  For risk control, the conservative exit level is $35.  Lastly, $34 is the final exit level for aggressive traders.

General Motors

 

Category: AOA Trade Summary

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