Bull Alert On...
Watch out for upside movement in:
JBLU, JNPR, JPM, XLE, SQ, TWTR
So that's Jetblue, Juniper Networks, JP Morgan Chase, SPDR's Select Sector Energy, Square and Twitter respectively
Are we playing these names by defining our risk upfront and paying a fraction of the stock price? Uh duh! How do we do this? Through options of course. What's an option and how does it work? Be empowered by taking our Basic Options Course.
Could you trade these names without options? Sure buy JNPR, XLE, TWTR for a few percentage change to the upside.
Food for thought: Nike (NKE) over the last two days went from $58.67 to $59.84 which is a +1.99% return...big move huh? Not really! So say you wanted to buy 200 shares this stock this past Monday (31 Jul) that would have cost you $11,734 and you would have made a whopping +$234 in this move. As an options trader we risked $160 to have the right to buy 200 shares and we made $100 from 31 Jul to 01 Aug which is +62.5% return on our money.
You can keep the +1.99% while risking $11,734...Emerald Chasers will take the +62.5% while only risking $160
