Watch stock is timely but first check Bid/Ask spreads
ith yesterday’s Intel (NASDAQ: INTC) induced rally and today’s Apple (NASDAQ: AAPL) based gap traders are once again reminded that earnings announcements are a force to be reckoned with. While the S&P Index Options (CBOE: SPX) was on the brink of breaching the pivotal 1300 level during Monday’s sell off, the positive reactions to these recent earnings releases has brought the broad market back to the upper end of its recent trading range — quite a change in character in two trading sessions.
Though yesterday’s surge helped lift stocks across the board, one sector that has provided particularly enticing options trading setups is the retail apparel space. The likes of Lululemon Athletica (NASDAQ: LULU), Under Armour (NYSE: UA), and Abercrombie & Fitch (NYSE: ANF) have recently experienced notable breakouts. Another stock in the retail space worth keeping an eye on is Fossil (NASDAQ: FOSL). During yesterday’s broad market surge FOSL was able to break above a base three weeks in the making.