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.
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JC Penney Firmly Denies It Should be On Death Watch
(Zero Hedge, 1/20/09)
Does CNBC Know What A Bid and Ask Are?
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J.C. Penney and the Rest of the Story in Retail
(Wealth Daily, 2/21/08)