Stock and Option Alerts

Stock Talk

Albert East

Albert East

Are some Alerts stronger than others ?
Are they Categorized ?

Linda McDonough

Linda McDonough

Hi Albert,
All of the Alerts carry the same weight. I do not recommend trades unless I feel quite strongly about them and have done a tremendous amount of in-depth analysis. That’s not to say that I’m 100% on them but I work quite hard to vet each recommendation. There are hundreds that I consider but toss out so the Alerts highlight my very best ideas.
Best,
Linda

pb

pb

I see the VFC Put can be bought for 0.65 against the original limit price of 3.30.can anyone tell me why I should not buy now,please?

Linda McDonough

Linda McDonough

PF,
I think the VFC puts are a fabulous buy right now. In fact, the stock was just downgraded by brokerage firm Keybanc this week, who warned that the company ‘s lead brands are susceptible to a slowdown. I purposely chose the January expiration so that we could capture any movement in the stock from the third quarter earnings release (coming on October 23- look for more information on this in Monday’s weekly update) and from feedback on holiday sales.
Best,
Linda

DanielB

DanielB

Hi Linda,
If I were to buy VFC180119P55 at today’s price of.45 it would take a move o $10 to break even. Would it be better to buy VFC180119P65 for $3.10, where break even is at a $2.60 move?
Thank you,
Dan

Linda McDonough

Linda McDonough

Hi Dan,

As a publisher, we are prohibited from giving personalized advice so I can only reply with a general comment regarding specific options series where I have not recommended them.

When choosing the strike price, there is always the tradeoff between how much capital to put at risk versus the change in the stock price needed to boost the option price significantly. When I recommended the VFC $55 puts the stock was $56 so you can see that I typically choose a strike price that is closer to where the stock is trading.

That said, you would certainly have more capital at risk with a $3.10 option versus one that costs $.45.

Best,
Linda

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