I owe you at least one trade idea.
Today I have TWO.
My first is a cheap call in British Petroleum (Ticker: BP).
I am in agreement with other members of the Option Pit team in terms of their outlook on gas and oil moving higher. (Check out Bill Griffo’s oil trade idea here, for instance.)
Not only is oil going higher long term thanks to the Biden administration, it is getting a short term boost due to the Blizzard of ‘21 and the havoc it is causing to the refineries and pipelines in Texas.
Looking at the BP chart you can see that it has broken out on Tuesday.
I like buying the BP Mar19 23 calls paying $1.06. A cheap shot on BP trading higher.
I would take my loss if the calls trade down to $.60.
Love My Lipstick
My second trade idea is kind of glomming onto Mark Sebastian’s Walgreens Boots Alliance (Ticker: WBA) trade idea, which you can read about here.
One of the things I purchase at Walgreens is Revlon lipstick.
It’s the best!
I have paid up for Chanel and two times the lipstick literally broke off on me!
Revlon is way better and I can pick it up at Walgreens.
Looking at the chart of Revlon (Ticker: REV), it also broke out on Tuesday.
I like buying the Mar19 12.50 calls with an implied volatility of 135 and selling the 17.50 calls with an implied vol of 153.
Paying $1.40 for the Mar19 12.50/17.50 call spread with the stock trading $13.17 puts the 12.50 calls $.67 in the money.
A great cheap shot at REV trading higher. I would take my loss if the spread trades below $.80.
Think about what you purchase at Walgreens — I think Mark may be onto something.
Thanks for Reading … See You Next Tuesday!