Raytheon (RTN) has been beaten very hard recently. From a high of $67 to current $57.5 levels. To me, it offers a short term buying opportunity for a bounce that may happen as soon as it touches the $56 area. There are many ways to play this bounce ranging from straight calls to bull put spreads. I am looking for a bullish call debit spread that is currently selling for $0.90/spread (Jul 57.5/60 calls) or play via 60/62.5 Jul/Aug call diagonal spread. The downside of diagonal spread upto $61 is “0” and the trade will make the most money if RTN is at $60 at Jul expiration i.e. nearly 30%. The vertical debit spread will make money if the RTN is above $58.5 by July expiration and if it’s above $60 the returns are going to be nearly 155 for each 95 investment.
Almost similar opportunity will exist in CocaCola (KO) if Coke falls to $53.5. Currently it trading at $54.18. Similar strategy can be created for Coca Cola as well.
Gold is approaching it’s solid 200 day moving average. There are several “right” reasons for gold to fall;) but I am personally long term bullish on Gold. It may offer a short term buying opportunity. If you play, play it safe i.e. via spreads for instance 84/86 bull call debit spread, or 84/82 bull put spread or 88/90 bull call diagonal spread.
Whatever strategy you use, be careful as gold is known to be harsh for short term traders.
These are speculative directional strategies and therefore if you do decide to play these, pls make sure you are allocating capital appropriately and ensure that you are willing to lose all or have your exit very well defined. I generally like to invest only 1-2% of the capital.
These are not recommendation. Pls do your due diligence before making any investment decision.
Profitable trading, OP