Weekend Trader Series
May 26, 2024
Open Positions Update
- The Interactive Brokers (IBKR) June 21, 2024, 105-strike call was closed after hitting its target profit of +100%. If you have not already done so, please close out of your IBKR position at the earliest opportunity.
- Close the Freeport-McMoRan (FCX) July 19, 2024, 50-strike call on Tuesday, May 28. Close the position at a limit price within the range of the current market price when you place the order.
The following is this week's recommendation:
Boot Barn (BOOT)Place a limit order to buy the Boot Barn (BOOT) July 19, 2024 110-strike call at a limit price within range of the current market asked price when you place your order. At the close on Friday, May 24, this option was offered at $8.10. BOOT closed at $113.25 on Friday, May 24.Do not attempt to enter this position after Tuesday's close.Please use the following guidelines to manage the position:- Exit the position if the option is at a 100% gain from your entry price.
- If the option has not reached its target profit by 3:00 p.m. Eastern time on Monday, June 17, close the position.
- If there is a change to the above closeout parameters, we will notify you in your regular Sunday evening communication.
Boot Barn (BOOT) stock pulled back to layers of support at its April high and 10-day moving average this week. And though the stock slipped after bearish guidance this month, the shares went on to have a bullish outside day reaction, and continued to recent 52-week highs, pointing to underlying technical strength.
Plus, while short interest has been unwinding since January (and is apt to continue given the stock’s strength despite the bearish guidance), short interest still represents 12.7% of BOOT’s available float. It would take shorts over five days to cover their bets, at the stock’s average pace of trading.
The equity also just closed above $112, which is seven times its initial public offering (IPO) price. Our recommended July 110 call option has a leverage ratio of 9.0, and will double on an 11.5% rise in the underlying security.
Most Recent Recommendations
The information contained herein is intended solely for the individual subscribers, is not intended for institutional investment organizations, and is not legal to be rebroadcast. Please click here for full disclaimer details.
Limitation on Schaeffer's Investment Research (SIR) liability: SIR liability, whether in contract, tort, negligence, or otherwise, shall be limited in the aggregate to direct and actual damages not to exceed the fees received by SIR from Subscriber. SIR will not be liable for consequential, incidental, punitive, special, exemplary or indirect damages resulting directly or indirectly from the use of or reliance upon any material provided by SIR. Without limitation, SIR shall not be responsible or liable for any loss or damages related to, either directly or indirectly, (1) any decline in market value or loss of any investment; (2) a subscriber's inability to use or any delay in accessing SIR website or any other source of material provided by SIR; (3) any absence of material on SIR website; (4) SIR failure to deliver or delay in delivering any material or (5) any kind of error in transmission of material. SIR and Subscriber acknowledge that, without limitation, the above-enumerated conditions cannot be the probable result of any breach of any agreement between SIR and Subscriber.