|This Trade Was Closed April 2, 2012|
Closing this trade today on a narrow range bar. Sold @ 1.10, which is double my entry price.
Original Trade Post:
Sector rotation today into some consumer staples names has been going on for few days here – investors seeking safety through yield. MNST and KO have been pushing their upper bollinger bands, and Pepsi is starting to take off as well. DPS seems to be garnering a halo effect from the industry strength, and I like the May $40 calls. Dr. Pepper/Snapple (DPS) also sports the 6th best Dividend yield in the “Food Beverage & Tobacco” category, higher than any of the other beverage makers, which I think will make value investors start to flock to it.
- The Ticker: DPS
- Target Price: TBD per share
- The Trade
- Buy to Open May 2012 40 Calls at .55 or better
- Trade Opened: Mar 12, 2012
- Trade Closed: Apr 2, 2012
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