The Weekly Watchlist: Holiday-Shortened Week Primes These 3 Stocks for Quick Profits
Shah Gilani|July 5, 2021
Holiday-shortened weeks are typically characterized by lower volume and higher volatility. That can cause some pretty hefty price swings…
Which is a great set up for some quick profits!
That’s why I want to put a few stocks on your radar that could be on the verge of a temporary change in direction riding on the coattails of that lowered volume and higher volatility.
First up, Adobe Inc. (ADBE), the software company that provides the Creative Cloud subscription service.
The stock hit an all-time high last week for no other reason than because this is a great company. However, I think it could be ready for a short-term pullback during this week’s trading.
ADBE was trading at $586.70 toward the end of last week. If the stock pushes up to $590 at any time this week, I like buying the ADBE July 23, 2021 $585/$580 Put Spread for $2.50 or less. I wouldn’t look to get greedy here. A quick 50% profit would be enough.
Next up, IDEXX Laboratories Inc. (IDXX), a company that develops, manufactures, and distributes products and services primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets worldwide.
Just like ADBE, IDEXX Laboratories is a solid company. They make a billions in revenue and have great margins – and the stock is trading near all-time highs, which makes it attractive for traders who might want to lock in some profits in a holiday-shortened week.
If IDXX trades up to $650 in this week’s trading, I like buying the IDXX July 16, 2021 $650/$640 Put Spread for $5 or less. I’d be happy to capture a quick 25% profit considering these options will expire in 11 days.
Last up, RH (RH), the home furnishing retailer which you probably know as Restoration Hardware.
The company had a nice pop on June 10, when it report quarterly results. But, since then, the stock drifted back and hasn’t been able to push back above that high. This tells me there’s some resistance, and I think that makes it a good candidate for a longer-term put spread.
I like buying the RH August 20, 2021 $690/$680 Put Spread for $5 or less. In this case, I like targeting a 100% profit, which gives this recommendation a nice 2-to-1 reward to risk profile.
Please keep in mind that this is a short week. We could and probably will see more price swings than with just the companies I’ve laid out above, so make sure you have your exit orders in place as soon as you enter a position.
And, remember, as always: don’t get too greedy!
Click here to view the watchlist online.
Until next time,
Shah Gilani