Options Trading With My Three Favorite Consumer Discretionary Stocks

Today I will explain why I plan on getting into three consumer discretionary stocks and how I plan on getting into them. First, I will state that I do expect a bit of a pull back (no more than 5%-7%) as outlined in How to Hedge With Vertical Put Spreads. And second, I will mention that I have taken this into account for the strategies in this article, and two of the three stocks outlined below have already pulled back nicely.

I believe a real recovery is underway and I think the stocks outlined in this article will benefit from this greatly. If we look at the Consumer Discretionary SPDR (XLY) compared to the S&P 500 SPDR (SPY) over the last year, we can see that the Consumer Discretionary SPDR has outperformed the S&P 500 SPDR by almost 9%.

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