Fossil a Favorable Find

After last night's earnings drubbing, I'm hesitant to toss out any plays or thoughts. It was one of those nights, but they happen. I have done the charts for tonight since they greatly assist in after-hours trading, which has been going much better than the pre-earnings trading. Of course, one should keep sizes smaller after hours but with the quick 3% to 5% moves you can often see in a stock, it certainly offers the ability to profit -- or lose -- quickly.

I favor Fossil (FOSL) the most going into tonight. The stock is pricing in a move of 10%, although I have support at $107 with upside targets of $122.50 and $130. If I were going to play it, I would simply use long Feb. 21 $115 calls and consider a few Feb. 21/Feb. 14 $115 calendar call spreads as well in case the stock does not move much. It looks as though it may be breaking above resistance. The concern here is likely the international market, but FOSL reminds me a bit of Michael Kors (KORS)....169 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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