Novice Trade: Dollar General

Since the holiday season, Dollar General (DG) has been really strong. The stock has gone over $90 and remained there. Following the old saying "If it's trading 90 it's going to 100," I think DG could easily get over the century line by February ahead of its next earning, assuming the S&P 500 doesn't tank, something I do not see happening right now.

With the run, implied volatility (IV) is low in DG and call prices are pretty cheap. I can buy the February regular 95 calls for about $2.50. In my view, I will get to flip out of these by the end of the month at $4-5 a contract....8 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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