Markets way down, Supervalu is heading up (SVU)

Markets way down, Supervalu is heading up (SVU)


This Trade Was Closed March 13, 2012

Closing this trade in SVU. The stock was downgraded today, and the shares did not participate in the broad market rise

Original Trade Post:

Check out Supervalu today. Up 3% on good volume, while the market is tanking. Long the $7 strike calls on a flyer at .05 per contract. Keep your position size small because you should assume you could lose the entire investment since this is a speculative play. You just need a little position. If the contracts ticks up just a little, you can get out at .10 for an easy double or even more if the upper resistance is met.

Note the R1 R2 and R3 values (based on 6.20 as the pivot), for cues as to when you can take profits. Don’t stay long because this is just a deadcat bounce.

R1= 6.35 – option should be worth $.05
R2 = 6.59 – option should be worth $.10
R3 = 6.74 – option should be worth $.10-.15

Trade Details

  • The Ticker: SVU
  • Target Price: TBD per share
  • The Trade
  • Buy to Open Mar 2012 7 Calls at .05 or better
  • Trade Opened: Mar 6, 2012
  • Trade Closed: Mar 13, 2012

Chart courtesy Finviz. Click to open larger.

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