Options Trader Identifies Two Potential Shorts
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 (NASDAQ: FOSL) and Monster Beverage Corporation (NASDAQ: 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.
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.
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