This week’s Momentum Trader Alert recommendation takes you into the booming financial services sector.
After underperforming the broader market for the first half of the year, the financial sector has exploded to the upside since second week of September.
American Express Company (AXP) provides travel-related services, financial advisory services and international banking services throughout the world. Founded in 1850 and headquartered in New York, New York, the company also offers the American Express Card, the Optima Card and other consumer and corporate lending products.
American Express Company (AXP) vs. S&P 500 year to date
Momentum Trader Alert Analysis
Buy American Express Company (AXP) at market today, and place your stop at $89.50.
I am holding off on recommending options on this position for now.
Sell your stock position in The Progressive Company (PGR) for a modest 5.63% gain.
Sell your remaining PGR November $46 calls, which last traded at $3.12, for a 64.21% gain. You already sold half of these options on Aug. 21 at $3.10 for a 63.16% gain.
You were stopped out of Altaba Inc. (AABA) on Oct. 25 at $66.35 for a 15.03% gain. Also, close your related recent option position at a small loss, if you have not done so already.
Nicholas A. Vardy