We're looking abroad for today's trade in a company involved in the manufacturing and sale of connectivity and sensor solutions.
The stock is breaking out of a multi-year base and it offers us a nearby risk management level to keep our stop tight which means the potential for nice gains versus a smaller risk of loss.
Traders have made a lot of noise about the recent correction in Apple. And yes, the selloff has been large (for Apple).
But with daily trading volumes beginning to wane, it feels to me that the run has begun to exhaust itself and bears will have one more last-ditch opportunity with earnings on the horizon.
Barring something unusual, I think there will be something to disappoint both bears and bulls alike, amounting to a whole lot of nothing. Which sets up the perfect time for a sideways bet.
The energy sector is looking poised to break into uncharted territory, and we too are going to break some new ground by doing an options trade we've never done before in ASO.
Calling it a "trade" might even feel a little off, considering the timeframe of this one. It might be more accurate to call it an investment. Compared to most trades we do, this one has the potential to certainly feel like one.