Trade Summary: May 1, 2017

| May 1, 2017

May 1, 2017


Trade Rationale

We had a bump in the markets last week.  Then after a quick rally, we started sliding again.

If you look at a chart over the last two months, the market has been down as much as 3.25%… and right now, we’re down just over 0.75%.

It’s not a massive fall… no 10% corrections here.

Which is why this trade cycle we’re going to augment our PUT positions with some call options.

There is strength in the markets, and it’s interesting to see that consumer packaging companies are showing strength.  Just look at OI and AVY… Despite the market slide, these stocks are acting very strong.  

Let’s jump on that stock strength!

Note: Only two trades this week.

Here are the trade ideas…


Trade Details

#1) Buy Owens-Illinois (OI) Aug 18th $23 Calls up to $1.10

We’re watching for a continued rally in the stock. Exit for a profit if the stock runs to $23.50… or $24.  Conserve capital at $20 and $19.50.


#2) Buy Avery Dennison Corporation (AVY) July 21st $85 Calls up to $2.00

If this stock continues to run higher, we should see it hit some milestones quickly.  Exit on the upside at $86 or $88.  For downside protection, exit at $80 or $79.

Avery Dennison Corp.


Category: AOA Trade Summary