Bullish – LDPZ $291.60 – Consumer Discretionary
The S&P 500 (SPY) has continued to march higher with strong momentum, providing a higher risk of a pullback. Look for a continuation higher above $334 highs but remain cautious of quick pullbacks.
DIS Trade Idea:
On CNBC’s OptionsAction show on Friday, Tony Zhang suggested that Domino’s stock may rise on earnings following many consumer stocks. DPZ has consolidated for a couple of months and started to resume its uptrend last week going into earnings. Expecting DPZ to rise on earnings, Tony suggests buying a March 290 Call @ $10.50 Debit. As of Friday’s close, these calls were trading at $11.70 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: DPZ OptionsAction Video
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