Karpel’s Corner: Tradespoon not sweet on $HSY, developing bearish sentiment

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and  never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

Tradespoon not sweet on $HSY, developing bearish sentiment

Technically, The Hershey Company ($HSY) has demonstrated a pattern of bullish technical signs,with the stock above 50-day and 200-day simple moving averages.

But with the stock only meeting expectations (the company has matched five out of the last five analyst’s earnings estimates), and the P/E expensive compared to peers, we have a mildly bearish sentiment.

The short-term strategic approach is to look at an in-the-money put spread in July or, for you longer-term stategists looking at a Jan of ’15 in-the-money put approach, potentially selling a July 1 standard deviation put against it to offset costs.

See you next time at Karpel’s Corner!