Buy KORS via selling Sep 62.5 puts @72.6
I double down on Michael Kors as it moves up. I was already short Sep 57.5 puts. The last two times KORS broke out, it got cut down with additional news from the company. Perhaps the third time is the charm, and it gets to run a bit. The fundamentals seem extremely positive. Much of the growth is coming at the expense of Coach. The longer term dangers are saturation with too much exposure, and perhaps another strong competitor entering the luxury goods arena. Option traders need not concern themselves with the long term. The next earnings report is plenty long term for us.
Elsewhere, there are what I see as ridiculous articles warning about another 1987 style crash on Marketwatch. While it is always a possibility, the probability essential goes to zero, when pundits have an article leading Marketwatch with that headline. What is causing much of the angst is the 19% year to date gains in the stock market, and so many having completely missed the rally. This is on top of a 100%+ gain from the 666 SPX lows in 2009 (now 1690). Folks that have missed that entire move have to write something.
edit to add/ SPY Backratio for October
Buy SPY Oct 154 puts, Sell 2x SPY Oct 151 puts @168.9
This is for a net credit, a net bullish position with an explosive profit on a decline to SPY 151. Below 148, losses start to snowball. A move up, or no change means I pocket the small premium.
Long BRKB EMN GE GDX IWM KORS PG
Net long APC BA GLD LGF SPY