While quickly browsing through my watch list on lazy Saturday afternoon, Chart of Cree Semi caught my eyes. Cree fell hard last month from $69 to $50 due to earnings and consolidation. After a month of staying low it looks like it is on the move and might try to fill the huge gap of almost $7. Cree has a history of falling hard and running up with fire later. So to participate in the move I would be looking at a March 52.5/57.5 Bull Call Spread with a cost of $2.55. Also with all the concerns about market being ready for a 5 - 10% pull back I might think of giving it more time to work in my favor and look at a June Sprea with a cost of 2.70. If things turnout well this trade returns almost 85% in 3 months. Take a look at the chart to see the technicals.
Let us see how this one shapes up!!
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