S&P 500 Market Outlook: Neutral
Bullish Trade: KR $28.74 – Consumer Staples
OptionsPlay’s bullish trade for Thursday, Feb 27th is Kroger (KR). KR is part of the Consumer Staples Sector (XLP). XLP has declined 2.71% lower over the past month and its 1m and 6m trend turned bearish yesterday and is approaching its $61 support level.
Kroger’s 1m and 6m trend turned bullish on Feb 11th and recently started to test its $29 support level. With a technical score of 10 (out of 10), KR is a strong stock that will likely continue higher.
As a stop loss, if KR were to trade below $29 for multiple days, this would invalidate our analysis and suggest cutting losses on the trade. We also recommend cutting losses on this options trade if the value of the vertical spread declines below $0.65.
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