There were a few trades we were looking at establishing positions in this week for our Weekly Wrap. One was a long play, the other was a short trade.
Believe it or not, we wanted to get into JC Penney (JCP, $13.52, up $0.80) on Tuesday’s open but we wanted to see how the market held up before adding new positions. Shares of JCP closed last Friday’s session at $12.48 after kissing a low of $12.12. We figured a bottom was setting in and after Bill Ackman dumped his lostake, we figured shares could rebound 10%-15% based on Murphy’s law.
We also wanted to sell some near-term options on the stock to lower our cost basis but we failed to pull the trigger because we just don’t like the name. We have made some sweet triple-digit recommendation on shorting JCP in the past so we wanted to run some more numbers before making it a Weekly Wrap trade based on what we could sell the options for.
We snoozed and we lost a good opportunity to make a quick double-digit profit as shares have kissed $13.70 today. We are still running some numbers and doing chart work as they could be some further upside movement but we are excited about the New Trade we have for you right now.
Shares just fell below $20 last week and there is a gap to fill in the mid-teens. We don’t often short stocks for our Weekly Wrap but when we see an opportunity to make 10% or more in a month we don’t mind pulling the trigger.
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