Wednesday, November 9, 2011

2 Footwear Trades to Kick Off the New Year

The holiday music is already playing in stores, which means that it's time to
make your shopping list … not for Santa, but for your stockbroker. Here are a
couple of bullish option trade ideas in two popular retail stocks that could
bring in some cash before the holiday bills start rolling in. Under Armour
(NYSE: UA ) is an innovative sports apparel company. Most products are made from
its moisture-wicking and heat-dispersing fabrics that keep athletes dry during
workouts. While known for shirts and shorts, the company is branching into
headgear and, more recently, performance footwear. Another key initiative
launched this year is "performance cotton." The company has a huge share of
the non-cotton market, but now its targeting cotton with its Charged Cotton
line, which could nearly quadruple its addressable market. UA Technical Take :
After a high volume breakout the stock is now forming a bullish pennant, so the
best option trade here for a happy New Year is buying the UA Jan 95 Calls around
$3, with a target of $5. Deckers Outdoor (NASDAQ: DECK )

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