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Abercrombie & Fitch Co. (ANF), $11.36
Daily Chart
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Trade: We recommend buying 10 May 14 puts (80 DTE) for $3.10/share or better (closed at $3.05 x 3.20). We are going a few months out of this since all time frames suggest lower prices. We will plan on converting it into a bearish diagonal after an expected sell off by selling the Feb OTM puts at higher prices than they are currently.
Strategy: Breakdown on the daily and weekly charts, with monthly in downtrend.
Max Loss: Debit paid.
Stop Loss: $12.12.
Second Trade on ANF: We recommend selling 10 Feb 12/13 bear call spread (19 DTE) for a net credit of $170 or better (closing mid-point).
Max Gain: $170
ROI: 20%, with 7.1% cushion to break even of $12.17.
Max Loss: Cost basis of $12.17 if assigned.
Stop Loss: $12.12.
source: mastertrader
