JCP

Folks, JCP is noteworthy of your attention…. Today, I scalped (intraday trades) it 33 times in ranges of 12 to 25 cents.  The stock made an intraday 52 week low of 43.40.  For those looking to establish a “buy and hold” postions in retail, JCP jhas been beaten from 68.00/share.  I recommend buy the underlying shares and write “out of the money” Dec strike 45 calls which are paying a staggering 2.70/contract (100 shares).  If the stock is below 45 by end of Dec, you get to pocket the entire premium, keep the shares, and have an oportunity to write a new set of Jan 45 calls.  All in all, the shares are worthy of dollar-cost- averaging.  Therefore, the current share level is a good entry.

More on this topic (What's this?)
More Pain For J.C. Penney (Grace Cheng, 11/14/08)
Target And J.C. Penney Forecast Slower Consumer Sales (Grace Cheng, 10/8/08)
Retail Website Traffic for Thanksgiving Week (Todd Sullivan's - ValuePlays, 12/4/07)
Read more on J.C. Penney at Wikinvest

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-- Posted by Jack Haddad on November 16, 2007 at 4:44 am --

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