Taking Advantage Of A Down Day
This stock had been on my watch list for a while, and the one piece I was waiting for—price consolidation, as indicated by its Chartmill set-up rating—has fallen into place. The stock beat on both top and bottom lines when it reported last quarter, and here are some of its current metrics:
Technical rating: 10
Set-up rating: 8
Fundamental rating: 7
Profitability rating: 8
Health rating: 7
Growth rating: 7
Valuation rating: 8
On top of that, it even pays a dividend of close to 5% annually. Not that we’re going to be holding the underlying stock here, but if it’s paying its shareholders money, that inspires a bit more confidence in the fundamentals.
The options market expects a move of about 12% in either direction when this stock reports in November. Our bet here is that that movement is going to be to the upside, and if we’re right, we could make a triple-digit gain.
Details below.
Today’s Bullish Bet
Keep reading with a 7-day free trial
Subscribe to The Portfolio Armor Substack to keep reading this post and get 7 days of free access to the full post archives.