It’s earnings season and one outsider looks like a decent bet under armor Inc (USA:UAA). But if you are going to bet on ‘Yes, the bulls continue to move the stock up UAA area on the chart; a bullish call spread remains in the starting lineup. Allow me to explain.
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For stock Bulls is at the level uaa — and responsible for this thing — it’s almost officially the game again. Retailer of athletics will announce earnings next Tuesday, may 1 before the opening. In the past quarter, investors are aggressive in shares of the following mixed company, but in our opinion, mostly better than expected or feared quarterly results.
Maybe under the armor (mostly) put back on the field — and convincingly so, on the playing field share of UAA chart for the second time in a row?
With the bar of expectations low enough and the street forecasting a loss of 4 cents and sales at 1.1 billion dollars, I personally love long games in hand UAA. And although I wouldn’t call Deutsche Bank, as a true fan, upgrade Monday from “sell” to “hold”, which led armor “rapidly growing” growth abroad, we think more on wall Street resident populations may be jumping on ‘da bulls bandwagon soon enough.
UAA stock daily chart
It’s been almost three weeks since the last penning bullish article on the stock UAA in InvestorPlace. But despite a discount of almost 6% on the armor continued collected technical signs of a significant bottom and a new bull trend continues.
After confirmation of UAA Mar the emerging uptrend, stocks continued to hold, earnings-last week of testing. In the price area currently also supported by the pattern of a Golden cross as the 50-day simple moving average crossed above the 200-day simple moving average.
In addition, firms to Monday for cleaning and moving trend lines at high and medium volume and a continued positive stochastic setting; UAA looks more located on a price chart.
Bottom line, the shares may not sprint above, since the growing business of the armor just not there now. But as the crisis to play, I will continue to bet on the Bulls attacking fresh highs and possibly even the championship returns style in 2018.
The shares of UAA bull call spread
Consider the options of UAA and given our expectations for the recently established uptrend one favors the spread combination is out of the money bull call spread. In particular, with shares at 16.73$ in July of $20/$22.50 call spread for 28 cents still looks attractive.
This vertical now price is for half of the purchase price, 55 percent of the whole in early April, when the stock was at $17.89. Along with the low cost and limited risk, this game still gives enough time on the calendar to enjoy the best repayment. This is especially true given the potential next week of earnings catalyst and ‘Yes, all the bears in defense and vulnerable to cover losing bets.
Investment accounts under the management of Christopher Tyler currently own positions within expectations (uaa) and its derivatives. The proposed information is based on the observations of Christopher Tyler and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional analysis of the market and of relevant reflection, Chris follow on Twitter @Options_CAT and StockTwits.