FOR THE LAST WEEK WFM HAS BEEN TRADING ABOVE THE $42 ALL CASH OFFER FOR WHOLE FOODS. I AM TAKING THE VIEW THAT WHEN A STOCK IS CONSISTENTLY ABOVE THE OFFER PRICE (ESPECIALLY IN AN ALL CASH BID) THAT THERE ARE OTHERS INTERESTED IN THE COMPANY. THE STORY HAS GOTTEN A LOT OF ATTENTION AND THERE ARE SEVERAL OTHER COMPANIES WHO COULD USE THIS (NOW THAT IT HAS...
Long Costco on market overreaction to 170 and I'll leave some on and aim for 180.
2017 Whole Foods has multiple 10% swings and upcoming resistance lines may be a 10-20% short opportunity
Technically Speaking A clear range has formed since September of 2015, roughly 26-35. Price is near the bottom of the range as this goes to publish(28.93). A simple strategy would be to buy 26, sell 35. I would however like to point out that above 35/36, supply is very thin until the 58 handle. Fundamentals The most important variable I handicap for when...
With VIX popping to >15 on Friday, my usual pattern is to rotate out of individual underlyings and into broad market instruments like SPY/SPX, IWM/RUT, etc. VIX ended the day at 16.2, and it could naturally settle back below 15, so I need to be prepp'd for either selling premium in broad index instruments if VIX sticks in there above 15 or playing a few higher...
We can take a pair trade here. Let's enter long WFM/WMT. Basically, we'd consider risk per share, to determine the amount of shares to long and short on each leg of the pair, but not use any stop loss. Profit will result from WFM outperforming WMT in the coming months. Good luck! Ivan Labrie.
$WFM daily shows a falling wedge attempting to break out. However, a darvus box has developed to contain the breakout (for now). Looks ready to pop w/ several gaps still open above.
We got a very nice 61.8% correction with the expanding ending diagonal in wave 5 of (C). First move up and first retracement are already in place. Good to long.
We can enter longs in WFM here, back at weekly mode support, as well as a Key Earnings Level. Since Vix is high we can sell puts at the money for easy returns, for instance, December expiry puts or calls. We can take a long stock/short calls position alternatively, but puts should be a good idea for sure. Buy/write: 35 strike calls / Jan '17 20th expiry....
Demand zone highlighted in yellow. Entry: $32.50 Stop Loss: $31.82 Target 1: $34.50
Sold this earlier today, but can't get onto Dough currently for the metrics ... . In any event, filled for $85/contract. I'll look to take it off for 50% max profit in the volatility contraction post-earnings.
We have an interesting setup here. We can try a pair trade where we'd short WMT and long the same amount of WFM, or we can simply go long WFM, either buying stock or trading bullish option strategies ahead of earnings. If trading stock, you can use my suggested stop loss location. If interested in my trading signals, or in personal tuition, contact me privately....
if the price move to over 35 level or penetrates down to the short term red line then there is a selling opportunity.
Good luck to you if you are. No position.
Here is my chart from 9 months ago when TFM was in the low $30's prior to the run up over $40. I only added that TFM is the cheapest it has been so far. It is consistently profitable and total revenues continue to grind ahead. You want to buy these quality stocks when others are selling and when they represent great value. It's time again to back up the...
Good risk to reward opportunity in WFM. I would go Long with an end of day confirmation of a close above 38.70. Stop at previous Wednesday's close of 37.88. Target would be a challenge of mid June highs at around 43. Reward : +4 Risk : -1.12
I just don't buy the argument that the organic food industry is too saturated and competitive for Whole Foods to remain relevant. There's just so many people out there, the market is big enough for all the players to book profit and prosper.