Readers may want to keep an eye on shares of Under Armour Inc. (UA). The stock has been holding up pretty well. Investors might want to buy calls on a breakout past last week's high near $70.70. Keep in mind that rival Nike (NKE) reports earnings on March 17th and NKE's results could have a big influence on trading in UA.
The FOMC meeting on Tuesday could spark another bout of volatility. Nimble traders may want to plan ahead and consider some sort of market neutral trade like a straddle or strangle on the major index's ETFs. If you don't see a big move following the report or Wednesday then get out quickly.
NEW DIRECTIONAL CALL PLAYS
Polaris Industries, Inc. - PII - close: 80.12 change: -0.11
Stop Loss: 78.49
Target(s): 84.95, 89.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 7 weeks
New Positions: Yes, see trigger
Why We Like It:
One might think that if the market was worried about consumer spending and how high gasoline prices might impact retail sales then a stock like PII would not be performing so well. Yet PII is holding up pretty good. Shares are consolidating near resistance in the $80-82 zone and closed virtually unchanged on today's market weakness. If the market doesn't breakdown then PII could be poised to outperform.
I am suggesting a trigger to open bullish positions at $82.25. If triggered our targets are $84.95 and $89.00. FYI: The Point & Figure chart for PII is bullish with a $98 target.
Trigger @ 82.25
- Suggested Positions -
Buy the April $85 calls (PII1116D85) current ask 1.50
Entry on March xxth at $ xx.xx
Earnings Date 04/21/11 (unconfirmed)
Average Daily Volume = 396 thousand
Listed on March 14th, 2010