Options Trader Identifies Two Potential Shorts

Rachel Shasha was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Sassy Options Founder Rachel Shasha told Benzinga's #PreMarket Prep that she sees two stocks setting up as strong short-selling candidates: Fossil Group Inc FOSL and Monster Beverage Corporation MNST.

For Monster Beverage, Shasha noted that the company spiked, but did not "hold earnings" gains. Now, around the $140 level, it is approaching a double bottom. If the stock breaks below there, Shasha said it could certainly move lower. Looking at a chart, the next level of support could be in the $132 to $134 range.

Start Futures Trading Fast — with a $200 Bonus

Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection.

Fossil Group, which reports earnings after Tuesday's close, was down more than 3 percent. Shasha said that she thinks this is a "big short," but noted that since the market is so negative, any incremental positive news from the earnings report could lead the stock to pop higher. On that move, she would look to sell more.

Monster Beverage added more than 31 percent to its share price this year, though the stock has come well off the early August highs of $155.83. Fossil, on the other hand, has sharply declined this year – falling 44 percent.