E.l.f. Beauty (ELF) and Advance Auto Parts (AAP) lead the Bull Strangle Watch List for This Week

This week’s Bull Strangle Watch List continues to emphasize diversification, structure, and tradeability rather than chasing short-term momentum. The list spans a wide range of sectors and profiles, allowing capital to be deployed selectively into stocks that demonstrate orderly price behavior and manageable volatility. The Bull Strangle framework is not built on predicting direction. Instead, it focuses on owning technically stable stocks while pairing those positions with disciplined option selling. The objective is consistency — identifying names where risk can be defined and price movement tends to evolve in a controlled manner.

Two names that stand out this week — each representing a different technical profile — are E.l.f. Beauty (ELF) and Advance Auto Parts (AAP).

E.l.f. Beauty (ELF) — Consumer Staples - e.l.f. Beauty, Inc., a beauty company, provides cosmetics and skin care products worldwide. The company offers eye, lip, face, paw, and skin care products. It offers products under the e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys Soulcare brand names. 

E.l.f. Beauty has been in a recovery phase following a sharp selloff, with price rebounding from the low-$70s and gradually reclaiming key moving averages. A strong earnings-driven bounce helped shift sentiment, and the stock has since transitioned into a tighter consolidation near the low-$90s.

Recent action shows ELF stabilizing just below its longer-term moving average, while forming higher lows and containing pullbacks. This suggests selling pressure has eased and buyers are beginning to reassert control. The technical picture reflects early-stage repair within a broader range rather than a confirmed uptrend.

From a Bull Strangle perspective, ELF offers:

• Improving structure following a deep reset
• Orderly consolidation after a momentum burst
• Volatility that remains elevated but increasingly controlled

This combination supports range-based premium collection where risk can be clearly mapped.

Advance Auto Parts (AAP) — Consumer Discretionary - Advance Auto Parts, Inc. provides automotive aftermarket parts. The company offers batteries and battery accessories; belts and hoses; brakes and brake pads; chassis parts; climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts. 

Advance Auto Parts has transitioned from a sharp rebound into a short-term consolidation phase following its recent earnings-driven surge. After rallying strongly from the low-$40s into the upper-$50s, the stock has pulled back and is now stabilizing near key moving averages.

Recent action shows AAP holding above intermediate-term trend support, with buyers stepping in on weakness and limiting downside follow-through. The stock has begun to reclaim its short-term moving average, suggesting selling pressure is easing after the post-rally retracement.

For Bull Strangle positioning, AAP provides:

• A pause within a developing recovery
• Contained pullbacks that signal stabilizing demand
• A volatility profile supportive of premium without excessive instability

As long as price continues to hold near current support levels, the bias remains constructive with potential for renewed upside momentum.

Why the Broader Watch List Matters

The strength of the Bull Strangle Watch List lies in its breadth rather than any single stock.

By maintaining exposure across multiple sectors and technical profiles, the framework:

• Reduces reliance on any one market theme
• Balances recovery setups with consolidation patterns
• Allows selectivity based on evolving volatility conditions

In markets where indexes are consolidating near highs and leadership continues to rotate, this flexibility becomes especially valuable.

Bottom Line

This week’s Watch List reinforces a focus on structure over speculation. ELF and AAP represent two distinct but complementary setups — one stabilizing after a sharp reset, the other consolidating following a strong rebound. Both offer improving technical behavior, defined reference points for risk, and the potential to support consistent income generation through disciplined option selling.

For readers interested in a structured, rules-based framework for combining stock ownership with systematic premium selling, The Bull Strangle Strategy is available on Amazon. The Bull Strangle Newsletter provides weekly trade planning, strike selection guidance, and portfolio management insights — all built on the same disciplined methodology.