Through the use of multiple timeframes a nice setup is emerging in Smithfield Foods ($SFD) and looks to gain $4 or more (about 19%). It’s in a decent sector and the stock is outperforming its peers over the last 6 months.

I’d consider buying a starter position with a break above $21 with an add on a daily close above $21.30. I’d also consider selling the Feb 21 put for $0.75 which would yield a 3.6% return (break even = 20.25) in lieu of buying stock but with the intent of owning shares if it’s assigned to me.

Just sharing a thought on a name that came up in a scan tonight. Obviously no trading advice here, just me thinking out loud.