In the week of 12/8/2014, two stocks to watch for good options activity are Target and Starbucks, ticker symbols TGT and SBUX. In full disclosure, I am long both stocks but have no option interest in either of them.
The calls should be in demand because I feel these stocks are undervalued. Capitalizing on price appreciation without having to buy the shares is good because this way you only pay something like $100 per contract of 100 shares and if the price goes up, you make as much money as you would owning the stock. Downside risk exists, however, if you have the option going the wrong way.
The calls should be in demand because I feel these stocks are undervalued. Capitalizing on price appreciation without having to buy the shares is good because this way you only pay something like $100 per contract of 100 shares and if the price goes up, you make as much money as you would owning the stock. Downside risk exists, however, if you have the option going the wrong way.
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