An investment that is not keeping up with other securities. In a bull market, for example, a stock is underperforming if its gains are less than or equal to those of the S&P 500 Index. In a bear market a stock is underperforming if it declines more quickly than the overall market. Underperform is also a type of analyst rating which is given when shares of a company are anticipated to perform marginally worse than the market return. The label is also referred to as weak hold or moderate sale in the market.
The market has been range bound for the last few weeks with volatility on the decline, and earnings all over the place. So where to go to look for a trade? Nike has already had Earnings and is near a low of the year, so seems like a good option. As a contrarian that can mean only one thing to me: I have to make a trade with the assumption it will go up from here over the next 45ish days. We will do that by making a Long Call Vertical trade to bet that it starts to head up over the next couple months. For more on my trading and how to join me in real time, see below. Watch the video to get the details. Kal Trading Risk Disclaimer All the information shared in this video is provided for educational purposes only. Any trades placed upon reliance of SharperTrades.com are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, commodities, options and forex, there is also substantial risk of loss. All tr