Playing It Safer

I've veered from my typical style of trading during earnings season, opting to go with lower-beta rather than higher-beta names, taking positions in Pepsi (PEP), Coca-Cola (KO) and Johnson & Johnson (JNJ) rather than chasing the slightly more volatile names. Thus far it has worked, although I will admit it could be difficult to stay away from names like Google (GOOG), Facebook (FB), Apple (AAPL), Amazon (AMZN) and, well, you get the point.

I have exited the Pepsi trade completely now. An average exit of $1.20, after an entry of $0.81. I considered hanging on to the November call spread, but I am willing to wait for a retest of $81.50 or a break over $83 before playing this name again. The earnings results were pretty much what I expected to see after the Coca-Cola report. Both names are running with similar yields, but Pepsi carries the stronger chart....201 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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