Seasoned Stocks Trade of the Week - Skechers

 Never Be On The Wrong Side Of Another Historically Repeating Market Cycle Or Trend…  Welcome to this week's Seasoned Stocks: Trade of the Week where we show you one trade you should be looking into for the week. We dive deep and take a look at how this stock has behaved historically during this time period. This is information you are going to want to read. We do this every week for you, so keep an eye out for another one next week. We do not give “specific” trading recommendations, rather “general” market information that’s purpose is to provide you an edge in your trading. Now, let’s get into today's report. So there’s a very good seasonal period that’s coming into play for Skechers U.S.A. (SKX).As many know, Skechers USA, Inc. is an American footwear company. Headquartered in Manhattan Beach, California, the brand was founded in 1992 and is now the third largest athletic footwear brand in the United States.   As you will see below, Skechers has gone up 86% of the time since 1999, between November 8th and December 3rd. The Average Move Up during this period is 10.81%, which is an excellent move to the upside. The Profit Factor is extremely solid at 8.02, which represents an 8x multiple of profit versus loss.   The past 5 years have been great…100% winners!   There’s been some really nice High Points in Skechers since 1999...   The Monthly, Weekly and Daily technical sentiment are currently bullish in Skechers...   The majority of Competitors appear to be in a buying period as well...   If we look at the week-by-week breakdown, Skechers has a strong seasonal period that carries on into the weeks of December as well...   A look at the chart below (see two histograms at bottom of chart) shows that both the medium term trends in the Industry (Apparel/Accessories) and Sector (Consumer Goods) are currently strong, which is always a nice alignment to have with the stock that you are considering to trade...   At the time of this writing (Friday, 11/5/21 @ 1 PM EST) this is a potential trade that I would consider…the stock is trading at $48.27. Based on the current market conditions, and my expectations that Skechers could get up near the $53 region (see chart projection below)... This seems feasible based on the near 12% average move over the past 5 years, and the average move up of nearly 11% since 1999.---FYI, see chart below and bottom histogram, options are slightly overpriced, so a spread typically is the better approach than buying an outright Call option when options are overpriced.   I’m looking out to a Jan 21, 2022 expiration based on current market conditions and price expectations. I’d look to Buy the 49 strike Call, and Sell the 55 strike Call, for a debit of 1.75 (or better). Should Skechers move up to the $53 range, I’m looking to capture almost a 100% ROI based on my model price projection tool (the blue dotted line, based on Dec 12, 2021 time projected). ---As a reminder, the entire month of December has been very strong seasonally for Skechers, so one might consider holding for more of a move prior to the $56.90 area, which is the purple vertical line that represents a 1 standard deviation move. Below is the risk graph and details of this potential trade opportunity…   You’ll see $160 p/l per contract if we get to the 53 level around Dec 12 based on the blue-dotted line projection. That’s close to a 100% ROI, based on a $175 debit to enter trade---maybe you get a better fill of $160 per contract, so that it’s a 100% ROI potential.   How debit spreads work is you can make a bit more money the closer to expiration ‘if’ you choose to push it---here’s what it looks like 1 day prior to expiration, ‘assuming’ we are at the 53 level at that time, then you’d potentially profit $235/per contract...and hey, it could keep going, there’s always that potential to profit more.   You could just buy a call...but it requires more capital, and you won’t quiet get to 100% ROI if it only trades up to the 53 level...now if you think it will take off more to the upside then you’d have a 200% ROI potential just shy of the 1 standard deviation level (purple vertical line).   In closing, there’s a million ways to trade, and there’s no ‘one and only’ holy-grail way to trade...hopefully these perspectives have proved worth your time, and you find which best fits your personal style. Ok. That’s about it, hopefully you’ve found value in the information provided. 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 seasonal opportunities, please click on the link below to access the Seasoned Stocks software: []( Trade Smart, Chad Shirley Provided as-is for informational/educational purposes only and should not be construed as investment advice . Past performance may not be not indicative of future results. Always consult your Investment Adviser before any decision. P.S. Don’t MISS OUT… if you have the Seasoned Stocks scanner, be sure to set up email (be sure to check your Spam and Promo filters) and text alerts for your upcoming Seasoned Stocks trade alerts that you enable:   Sent to: {EMAIL} [Unsubscribe]( Spyrol Group, LLC, PO Box 1510, Clearwater, Florida 33757, United States