When jobless claims came out yesterday many investors felt that this would point to an undeniable rise in payroll jobs. They continue to initiate long positions in hopes that Friday's report will continue to push us higher. However, something happened that they may have not taken into account. For one, the payroll consensus was increased from 180,000 to 200,000 leaving us to actually hit the target today as opposed to surpassing it. Another factor affecting the report is a slight miss in hourly earnings. Given that this follows a strong January, it's not quite as much of a red flag, but still a number worth noting. Crude futures have also aided in easing prices in stock indexes as we've finally been able to crack through our 2008 highs.
I'll be taking today as an opportunity to initiate a call position in the stock and look for a test of our most recent highs. Here I'll be moving out into April options with the 90 calls and stops around $94.00.
Trade: Buy to open JOYG April 90 calls for $9.40, with a stop at $94.00 and a target of $100.00.
At the time of publication, John Carter was long JOYG calls.
John is a Commodity Trading Advisor with Razor Trading. McGraw Hill commissioned him to write a book entitled Mastering the Trade, which was released in January 2006. Carter has also been featured on ABC Money. He and Hubert Senters founded and run the Trade the Markets web site.
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