Trade Ideas — $LULU, $PAY, $PLAY, $PEP, $PYPL, $UNFI
June 5, 2016
Need some trading ideas to get the week started? We’ve got you covered! This is our weekly issue June 06— June 10 where we go over macro economics, economic calendar, upcoming earnings and list a few trade ideas.
Economic News
In the US, personal income came in at expectations while consumer spending was up. ISM manufacturing was up while construction spending was down. Unemployment came in a little lower than expected while jobs report was a little weak.
Globally, China’s PMI was down and a few economic indicators show signs of slowdown. India’s economy showed growth in March quarter. Economists predict Russia’s hard times aren’t over.
Economic Calendar
In the US, not many reports are due. Productivity, consumer credit, and wholesale inventory reports will be reported.
Earnings Calendar
This week has just a few tickers with ER with decent option trading volume. Next week is slim pickings.
Markets
Hedge fund managers are betting June will see a down period as 8 of the last 10 June’s have been negative.
Utilities, Basic Materials, Consumer Goods, and Industrial Goods sectors were up last week overall. Financial and Consumer Discretionary were down.
Gold was bullish late Thursday to Friday. Oil is showing mixed signals. Stocks in general are in overbought territory with buy signal.
$LULU — Lululemon Athletica Inc.
Catalyst- ER 6/8/16.
Friday, 6/3/16, trading showed a test of resistance, as annotated in the red line. $LULU has a history of ER beats, which could make this a better after ER trade.
Trade
BUY $60 June 17, 2016 Puts @ $0.88 X $.92
$PAY — Verifone Systems, Inc.
Catalyst- ER 6/7/16.
$PAY has mainly a history of beating ERs. Chart analysis shows a bullish trend. Watch Call option volume.
Trade
BUY $27 June 17, 2016 Calls @ $0.95 X $1.00
$PLAY — Dave & Busters Entertainment, Inc.
Catalyst- ER 6/7/16.
$PLAY has a history of beating ERs. Chart analysis shows a bullish trend. I expect a fast trade before ER for quick Call gains. Watch resistance and after ER for possible Put set up.
Trade
BUY $40 June 17, 2016 Calls @ $1.50 X $1.85
$PEP — Pepsico, Inc.
Catalyst- Technical trade.
Chart analysis shows a bullish trend. Watch the resistance line and buy Calls at cheaper entry as $PEP falls from price resistance and recovers from green support line.
Trade
BUY $103 June 17, 2016 Calls @ $0.70 X $0.73 but at resistance point
$PYPL — PayPal Holdings, Inc.
Catalyst- Technical trade.
$PYPL has been trading in a downward price channel. Resistance was tested 6/3/16.
Trade
BUY $38 June 17, 2016 Puts @ $0.55 X $0.65
$UNFI — United Natural Foods, Inc.
Catalyst- ER 6/6/16.
$UNFI has been missing ER expectations mainly. Chart analysis shows a deeply overbought ticker and a possible resistance touch 6/3/16.
Trade
BUY $35 June 17, 2016 Puts once option volume picks up.
Happy trading!
Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in All Things Stocks is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don’t consider buying or selling any stock without conducting your own due diligence.
