In today’s Super Seasonals: Trade of the Week we will look at Skechers U.S.A. (SKX).
Skechers U.S.A., Inc. engages in designing, development, and marketing of lifestyle footwear for men, women, and children of all ages.
Below is a snippet of the seasonal statistics…
The stock has had a good 1 year run, although it’s experienced a pretty good little pullback in the past 3 months. Daily Technicals Rating has the stock as a Sell currently, while the Analysts have it currently rated a Buy. This might be a good value area to consider accumulating shares of the stock.
A look at the stock chart below shows a recent price squeeze post a very volatile wide-range trading (post Earnings) day. Will price breakout soon, and where? If a reader would like to see more of a pullback, there’s strong pivot support in the 44.50-43.00 area. That is a good place to see how price action reacts. Looking for a good area to buy might make rational sense there. A break below 41.50 might signal further downside in the stock, and I would get out if I were actively swing trading the stock. There is strong pivot resistance in the 52.50 – 54.50 area. That’s a rational upside profit target objective.
Say a reader wants to play a breakout, while keeping an acceptable risk to reward. Here’s an idea. It requires having a tight 1 ATR (Average True Range) stop, while we hope to get a 2-3 ATR move to the upside resistance area. To play this, a reader might consider buying shares when it trades above the post-earnings day candle that I circled 5 candles back.
If a reader is very bullish now, here’s a potential Call to consider buying …
- Buy Dec 15, 2023 expiration
- $47.50 strike call
- Debit of $2.02 or Better
If a reader is moderately bullish now, here’s a potential Bull Call debit spread to consider…
- Buy Dec 15, 2023 expiration. $47.50 strike call
- Sell Dec 15, 2023 expiration. $50.00 strike call
- Debit of $1.07 or Better
As you likely know, there are literally dozens of solid ways to approach trading Skechers U.S.A. (SKX) with a bullish bias. The decision of how to best invest in the stock or trade the options is an individualized decision, unfortunately there is no one best way. Hopefully this information has proved worth your time. Please remember, do your homework, and fully understand the risk before trading anything.
To learn more about seasonal information on Skechers U.S.A. (SKX) and other solid seasonal opportunities click here SuperSeasonals. For other seasonal opportunities, please click on the link below to access the Super Seasonals software:
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