Trade Summary: May 30, 2017

| May 30, 2017

May 30, 2017

 

Trade Rationale

OK… it happened.

Last week the Dow trekked above the 21,000 mark… and held its ground.

It might be the early stages of a breakout… or it could be a big head fake.  

I don’t want to wait and miss a move.  So, since this is a tiny breakout above a key resistance point, I think we need to take a position.

We will be early… but that’s ok.

The last few market rallies have had the retail sector playing a big role… so we’re going to pick two retailers to tie our cart to.

Starbucks (SBUX) and Tiffany (TIF).  

Here are the trade ideas…

 

Trade Details

#1) Buy Starbucks Corporation (SBUX) Aug 18th $65 Calls up to $1.70

We’re watching for a continued rally in the stock. Exit for a profit if the stock runs to $65 or $66.  Conserve capital at $59 and $57.

Starbucks

#2) Buy Tiffany (TIF) Aug 18th $87.50 Calls up to $0.70

This stock has the potential to run very quickly!  Exit on the upside at $90 or $92.  For downside protection, exit at $83 or $81.

Tiffany

 

Category: AOA Trade Summary

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