2015-04-20 Don’t Look For a Rebound In RCS Capital Anytime Soon (RCAP) | Free Trade of the Day
Don’t Look For a Rebound In RCS Capital Anytime Soon (RCAP)
Notes: RCS Capital’s earnings estimates continue to be slashed month after month (down 11%+ in three months for 2015), but they’ve still found a way to disappoint in recent quarters. January selling agreements were down to 1,132 vs 1,151 in January 2014. Overall demand for non-traded REITS fell 7.6% for the company in 2014 as accounting issues were revealed at American Realty Capital Properties (ARCP had previously had a deal to sell Cole Capital to RCAP). More than 12.2M shares are currently sold short (70M+ shares outstanding).
RCS Capital (RCAP) Options Trade Idea
Buy the (RCAP) Oct $5/$9 bear put spread for a $1.40 debit or better
(Buy the Oct $9 put and sell the Oct $5 put, all in one trade)
Stop loss- $0.70
1st upside target- $2.75
2nd upside target- $3.75
ORM Market Commentary (5-10 trades/analysis of stocks, ETFs, and indices per day like in the Free Trade of the Day above) is included in my ORM Equity/Option Trader Subscription Service for $9.99 per month (available now!).
1 On 1 Options Mentoring: Learn more about my 1 on 1 equity/options mentoring courses that help can you improve your trading odds and risk management skills (courses start as low as $55!).
