NEW DIRECTIONAL CALL PLAYS
Sovran Self Storage Inc. - SSS - close: 109.50 change: +1.45
Stop Loss: 107.40
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 257 thousand
Entry on January -- at $---.--
Listed on January 09, 2016
Time Frame: Exit PRIOR to earnings in mid February
New Positions: Yes, see below
REIT stocks had a rocky year in 2015 as investors worried about the Federal Reserve raising rates. Well the Fed finally did raise rates in December and shares of SSS soared to new highs. This stock has been outperforming both its peers and the broader market. Last year the S&P 500 was flat (-0.7%) while the REIT ETF (symbol: IYR) lost -17.6%. Shares of SSS delivered a +22% gain last year and the bullish momentum continues in 2016.
SSS is part of the financial sector. According to the company,
"Sovran Self Storage, Inc. is an equity REIT that is in the business of acquiring and managing self storage facilities. The Company operates over 500 self storage facilities in 25 states under the name Uncle Bob's Self Storage."
This is a relative strength play. SSS has rallied toward round-number resistance at $110.00. Shares spent the last several days consolidating sideways in the $105-110 zone. Now it looks poised to breakout. The point & figure chart is bullish and forecasting a long-term target at $130.00.
Readers might want to consider buying calls on a breakout past $110.00. However, the intraday high on December 30th was $110.60. We are suggesting a trigger to launch positions at $110.75.
FYI: SSS has an $0.85 dividend coming up soon. The ex-dividend date appears to be January 15th. The stock will likely gap down on Friday morning due to the dividend.
Trigger @ $110.75
- Suggested Positions -
Buy the FEB $110 CALL (SSS160219C110) current ask $2.60
option price is a current quote and not a suggested entry price.
Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.
Option Format: symbol-year-month-day-call-strike