Coach Inc (COH) is a marketer of accessories for men and women. They provide consumers with a range of accessories including leather goods, handbags, watches and fragrances. The stock is currently trading around $55.40 in a 52 week range of $45.87-$62.26. The stock has been relatively weak this year, selling off around 0.25% year to date in a broader market that is much higher. COH is even weaker over the past 12 months down nearly 11%. Recent bearish order flows in the options market also suggests that sentiment on COH is for more downside. Current open interest put/call ratios are also very bearish at 1.58. Still trading in neutral to bearish territory on the Ichimoku Cloud we believe that COH sets up well at this level for a swing trade.
Trade: Short COH Stock at $55.30 with a stop at $57.50
Risk: $2.20 per share
Profit Target #1: $54.25
Profit Target #2: $53.20
Profit Target #3: $51.60
