Advance & Vanquish
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Advance & Vanquish

Henry Gambell
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For today's Hot Topic I want to take a look at another company that continues to buck the trend. AAP was founded in 1929 and profits from the idea that not everyone wants to take their car to a mechanic. The company sells everything from floor mats to clutches, and caters not just to the DIY crowd but also to those that prefer to have the labor done for them. They understand there are those of us out there that know how to change our own oil & spark plugs, and the frugal among us can usually do it for a fraction of the cost.

During the bear month of August AAP held gains and resumed its uptrend with the recent strength in the S&P 500. The stock made new 52 week highs last Thursday and sets up a clean wedge where I'll be looking to pick up any pullbacks to trendline. I like stocks that make trading easy. You can setup these buys during any pullbacks, have stops set below a break in the trendline and then look for a pleasant ride along with the trend.

Trade described: Buy to Open NOV 55 AAP Calls For $5.00

Positions at time of publication: No Position

Symbol AAP
Action (Buy to open/Buy to close/Sell to open/Sell to Close) Buy to Open
No. of contracts (where applicable) 1
Expiration month NOV 2010
Strike price 55
Type (Stock/Call/Put) Call
Trade price $5.00
Spread (better than/none) xxxxxxxxxxxxxxxx
Position? Long
Chart Source? Trade Station
Stop AAP @ $54
Target AAP @ $64




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