I feel like the stock has gone too far, too fast, however, and provide an options trade that wins if the shares pull back.
Ross (ROST) has benefited significantly from this trend, with its stock rising by 20% over the past two-and-a-half months.
Support and Resistance: Using basic support and resistance concepts, we can identify short-term resistance around the 150 level.
With ROST trading around $148.08, my plan is to buy an at-the-money (ATM) put spread.
Regardless of ROST's current trading price, my long strike will be set above the current price, and the short strike will be positioned below it.
Persons:
ROST, Nishant Pant
Organizations:
Ross Stores, RSI, CNBC, NBC UNIVERSAL