ULTA options are affordably priced at the moment, too
With Wall Street's historic August firmly in the rearview, it's time to look ahead at the best stocks to own in September, historically. In a list compiled by Schaeffer's Senior Quantitative Analyst Rocky White, of the best 25 S&P 500 (SPX) stocks to own in September over the past 10 years, cosmetics retailer Ulta Beauty Inc (NASDAQ:ULTA) stands out as the top performer.
More specifically, looking back over the last decade, Ulta Beauty stock boasts an average September return of 9.4%, with nine out of 10 returns positive. It's also worth noting that seven general retailers occupy the list, the most of any sector.
At last check, ULTA was trading at $230.63, so a move higher of similar magnitude would put the stock above its year-to-date breakeven point and in territory not charted since early June. The shares used a post-earnings bull gap from Aug. 28 to topple their 200-day moving average, a trendline not conquered since June 4.
The good news for options traders is that a post-earnings volatility crush means near-term ULTA options can be had for a bargain at the moment. The security's Schaeffer's Volatility Index (SVI) stands up at 44% -- in the 15th percentile of its annual range. This indicates that now is an attractive time to jump aboard
the blue chip with options.