Options Edge: Credit collects 40% of Width

The bullish DailyPlay for Friday, May 8th is Dollar General (DG). DG has rallied 10.5% in the last month and has consolidated around $175 for 3 weeks. As it expands its digital strategy and a low-cost pricing model on its goods its an attractive play for consumers looking to save during these economic times. 

Fundamental View

• BAC credit card spending on groceries accelerates above 11% 
• Increase in staples and grocery demand due to COVID-19 
• Digital & low-cost strategy is attractive heading into a recession

Technical View

• DG’s 1M trend consolidates within a bullish 6M trend, good risk/reward entry for long positions
• DG recently broke above its $167 support level
• Bullish relative strength score (9 out of 10)