The Trade Plan:
- I really like the recent “flagpole” we saw Sept 10th, which shot the stock up 12% in a single day. Since then, FIZZ has consolidated very nicely for an entire month in the low-$50 range and is finally breaking out of the $54 level which was resistance the whole time. I am looking for a slight pullback to the low $53 level, which is where I want to start a trade.
- I plan to keep a pretty tight stop on this trade. If FIZZ closes under $51, I will stop out of my position and look for another opportunity to come back to it when it sets up again later. If I am right, then I hope to take profits if FIZZ pushes up near $60.
The Trade Details:
- FIZZ Nov 19 2021 $55 Call in $2.50-3.00 range
- Another lower-risk option on this idea that I like is to sell FIZZ Nov 19 2021 $50/45 put credit spread around $1.45.
FIZZ National Beverage Co. (FIZZ) - Bullseye Pick of the Week
FIZZ was the Bullseye trade alert for the week. The stock moved above $54 dollars that week and was able to see favorable returns for just five days.
Original Alert went out on October 15, 2021.
FIZZ has been climbing higher since August even with many stocks well off their highs.
But it’s considered a tricker trade because it is a lower-volume stock and therefore has less options that are available to trade.
For example, there are no weekly contracts on FIZZ which means I’m forced into looking at a longer-term play. For this trade, I’ll be eyeballing the November contracts that have about 40 days until expiration.
Important: Due to the lower volume, I’ll be trading a smaller size position and allow for higher levels of volatility than I normally would.