Trade Alert: Top Names

A bullish options trade on an undervalued PA top name.

Another, Rare Undervalued Top Name

Portfolio Armor’s automated security ranking system doesn’t consider fundamentals at all—it just looks at price movement and options sentiment. Because of that, value stocks make fairly rare appearances, but one hit #4 on last night’s top ten.

According to Chartmill data, this one has solid fundamental ratings (all are on a scale of 0-to-10, except for the Piotroski F-Score, which is on a scale of 0-to-9):

• Overall fundamental rating: 7

• Profitability rating: 9

• Health rating: 8

• Growth rating: 5

• Valuation rating: 7

• Piotroski F-Score: 8

And solid technical ratings:

• Overall technical rating: 10

• Set-up rating: 8

The options market predicts a move of about 6% in either direction over the next month (which includes an earnings release). Our trade is a bet that the stock will move about 4% higher over that time frame. If we’re right, we’ll make about 200%, and if we’re wrong, we’ll lose as much as 100%.

Details below.

Today’s Bullish Trade