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MomentumOptionsTrading.com Weekly Wrap New Trades (RBS, PMD, RAD) for 7/23/13
We have 3 New Trade for our Weekly Wrap.
One is on a stock we recently profiled, one a financial play, and another trade is on a stock we feel is way undervalued. The first company has been around for decades and pays a nice 5% dividend. The stock is currently trading just north of $11 and provides safety in case volatility picks back up.
The second company is also a fossil and shares are near $3. We think they can double to $6 on a turnaround story or as a takeover target.
The third stock is on a banking play on a stock that is just above $10 we fell can trade to $13-$15.
Our Track Record this year for the newsletter is now 26-3 and an amazing 70-5 since inception (2011). We may also have 1-2 trades this Friday that could be called away from us that would get us to 28-3 for the year but we don’t mind holding these stocks if we aren’t.
Buy Royal Bank of Scotland (RBS, $10.35, up $0.03)
Action: The 52-week high is at $11.84 and we believe shares can trade up to $15 over the next 6 months. We will wait to sell a call option against the position.
Buy Psychemedics (PMD, $11.65, up $0.20)
Action: The stock doesn’t trade options and is thinly traded but it is a safe play and a way to make 6% a year with a shot at shares climbing into the mid-teens. Check the Weekly Wrap Premium section to get the research we did on the company just a few weeks ago if you are a new subscriber.
Buy Rite-Aid (RAD, $2.90, down $0.08)
Action: We believe shares can double over the next 6-12 months and options are available for us to write a covered call trade. The 62-week high is at $3.21.