|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: March 12, 2012
- Trade Closed: April 2, 2012
Chart courtesy Finviz. Click to open larger.
This is not investment advice. Learning Markets, LLC is not responsible for errors or omissions. Please be sure to read our disclaimer.