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Trade of the Day: Signet Jewelers (NYSE:SIG)

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Today, we're opening a new bearish trade on Signet Jewelers Limited ( SIG ). The risk overhang from Signet's ongoing legal troubles (employees stealing customer's jewels) and control problems could turn out to be more severe than many investors have assumed.

We think litigation uncertainty and low expectations for spending in the third-quarter will send the stock lower while it is at resistance. Through the end of the year, high-end retail should continue to struggle, and a break of September's lows would send SIG into another May-style decline.

Buy to open the SIG November 75 Puts (SIG161118P00075000).

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InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.

The post Trade of the Day: Signet Jewelers (NYSE:SIG) appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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