Today, I would like to make a suggestion on a stock that I believe should continue to get a bounce and follow through to the upside.
The stock is Kirby Corp.(KEX).
I would like to use the same structure as the trade we just closed
out on NTAP.
That is the unequal straddle.
KEX does not report until April 30th, so there is no scheduled earnings event in the near future.
KEX is trading around $75 as I write this.
The suggestion will be an unequal straddle with a bullish bias.
The idea will be buy 2 calls for every 1 put.
Buy to Open (2) March 20th - $75.00 calls @ $2.60. The 2 calls will cost $5.20.
Buy to Open (1) March 20th - $75.00 put @ $3.10
The total debit will be $8.30 per position.
Based on the nominal portfolio, limit the trade to a 2 lot or a total of $1,660. This is a 1.6% risk based on the nominal portfolio.
The end result if you trade the suggested position size is that you will own (4) March 20th - $75 calls and (2) March 20th - $75 puts.
