ACTION:

Buy to open the WFM February 32 calls (WFM160219C00032000, $0.50, up $0.02) at current levels.

Dear Momentum Stocks Weekly Subscriber,

I recently profiled an earnings trade for Whole Foods Market (WFM) that you can read on my publisher’s website, InvestorPlace.com, and I said that I was more bullish than bearish on the company’s expected numbers. However, instead of using the March options that I profiled in the article, I’m electing to use February options for a quick in-and-out trade.

 

Whole Foods Market (WFM, $28.81, down $0.25)

Buy to open the WFM February 32 calls (WFM160219C00032000, $0.50, up $0.02) at current levels.

Action: I like these call options at current levels, and you can use a Limit Order up to $0.60 to get the best fill.

WFM

This is an earnings trade, so the risk/reward is very high, and this will likely be an all-or-nothing trade. I will likely close this trade near tomorrow’s opening bell — win, lose or draw — as these options expire next Friday.

These are the regular monthly options that expire on Feb. 19. I will provide the parameters for the trade in tomorrow’s Mid-Week Update.

 

All prices given in this update are current as of 3:25 p.m. EST.

I hereby disclose that I will be participating in the aforementioned trade(s). Every new Momentum Stocks Weekly recommendation is listed with the price at which I entered my own position. If the price is slightly different than my recommended entry or exit price when you receive the alert, don’t let that keep you from getting into or out of a trade. Occasionally, you might even get a better “fill” price than what is posted in the Open Trades and Closed Trades.

Trade on!

Signed

Rick Rouse
Editor
Momentum Stocks Weekly