FIG – My Bullseye Pick of the Week

FIG Call options near $2–  days later $0.70 = – 70%, not all of them work out

My Trade Plan Details:

• • • FIG August, 29 $83 calls near $4.00
      
    • Stop: Closes FIG below $76
    • Target 1: $83
      
    • Target 2: $87
      
    My reasoning:

    Heading into this week, the market appears indecisive about its next direction.  While the trend has definitely been higher for the last few months, markets are now trading under their short-term moving averages, which makes me cautious with new long trades.

    The sentiment isn’t bad enough to make me want to start new short positions either, so if I had a choice on what to do for the moment… I would be in cash!

    However, there are a handful of trades I like right now, and FIG is at the top of my list for its risk/reward profile at the moment.

    This is a very volatile recent IPO, and I like the potential base it has been establishing lately.  

    I also don’t think this stock will be as susceptible to general moves in the market, so it could breakout even if the markets do trend lower this week.