Get onboard this consumer and luxury brand juggernaut

Shares of Coty Inc (COTY) which makes cosmetics and perfume for major retail and luxury brands such as Gucci, Adidas, Burberry and dozens of others is up 46% YTD, and all short term trends point to higher gains to come.  With a market cap of $10B, and positive earnings we believe this stock will move higher based on analyst upgrades, healthy balance sheet, and favorable consumer trends in the short term. 

Barring a hard recession that curtails comsumer spending shares can continue rising, and we'll be looking closely at an upcoming earnings report to confirm the company's performance.  Today we put on a synthetic long position on COTY by going long the August 2023 $13 Calls for $0.94, and selling the same expiration $11 Puts for $0.45, for a net cost on this trade of $0.49.

If shares drop below $10.55, we'll gladly buy shares if we're put the options and forced to buy the stock.  We are also adding COTY to our long portfolio today.