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Newsletter

Daily Newsletter, Thursday, 1/14/2016

Table of Contents

  1. Market Wrap
  2. New Option Plays
  3. In Play Updates and Reviews

Market Wrap

Could This Be The Bottom?

by Thomas Hughes

Click here to email Thomas Hughes
The indices made a nice bounce from support as earnings season gets underway.

Introduction

The indices made a nice bounce from support levels as earnings season gets underway. Global fears, while present, are taking a back burner while traders focus on what is starting out as a better than expected reporting season. Today, JP Morgan beat on the top and bottom lines, tomorrow Wells Fargo and Citigroup may do the same.

Early market action was to the upside despite continued volatility abroad. Asian indices were mixed; the Nikkei shed -2.5%, Shanghai gained nearly 2% in the wake of China's recent actions and a terrorist attack in Jakarta involving at least 6 separate explosions. The news caused indices in Europe to fall, the DAX led with a daily low more than -2.5% but closed with a loss of -1.67%.

Market Statistics

Futures trading were positive all morning, indicating a gain of less than 0.25% for most of the indices. The bombing in Jakarta and sell-off in Europe caused the market to wobble a bit but did not overcome hopes and expectations for a decent earnings season. The market continued to wobble after the opening bell; the indices were up, the down, then up, then down and then up again several time before 10:30AM. After that the bulls took charge and drove them up by nearly 1.5%, many of them from potential support levels. Buying lasted all day, intraday high was hit in late afternoon, with the indices closing near those highs.

Economic Calendar

The Economy

Today was light on data, except for weekly claims the only other release was import/export prices. Both fell. Export prices led with a drop of -1%, import prices followed with -0.6%. This is following declines in both for the previous month as well.

Initial claims for unemployment rose by 7,000 from last week not revised figure. This weeks total, 287,000 is slightly above expectations but remains low and consistent with ongoing labor market health. The four week moving average of claims rose by 3,000 to 278,750 and is also consistent with labor market health. On a not adjusted basis claims rose by 24.3% versus an expected +21.1%. Year over year not adjusted claims are -5%. On a state by state basis NY and GA lead with increases in claims of +15,090 and +12,139 while IL and CA lead with declines of -3,633 and -2,191.


Continuing claims rose by 29,000 from last weeks upward revision of 4,000 to reach 2.263 million and approach a 2 month high. The four week moving average also rose, by 5,250, but is holding steady near 2.200 as it has been the past several months. The rise is expected due to seasonal strength in job losses yet remains low and consistent with over labor market health.

The total number of claims for unemployment 313,000 to reach 2.549 for the first time in 9 months. This jump is also not unexpected due to seasonal factors. Based on the historic data we can expect this number to rise again over the next few weeks before topping out and then falling off going into the spring and summer. So far, the total number of claims remains about 10% below levels seen last year and consistent with a healthy labor market.


The KC Fed's Index of Labor Market Conditions was released yesterday. The index shows gains in both activity and momentum. Activity crossed above 0 for the first time since 2008, an event that is historically associated with the onset of economic boom.


The Fed's Bullard spoke in an interview today. He says another rate hike, in the near term, may be hard to justify due to plunging oil prices. This news no doubt had some effect on today's action, it definitely relieves some fear the FOMC would act again in January. Now it looks like March may be the soonest, possibly further out than that.

The Oil Index

Oil prices bounced back today by nearly 3% but remain at low levels near $31. Today's move may be a sign of profit taking or short covering because the fundamental picture remains bearish. Add to that the Iranian supply which is about to be unleashed on the market and outlook for oil prices remains poor.

The Oil Index climbed more than 4% today in a move that confirms support at the 950 level, at least in the near term. Today's action produced a longish white candle and a bullish attack pattern that may lead to a test of resistance at 1,000. The indicators remain bearish but have begun to rollover, consistent with a bounce from support. Longer term, the indicators are divergent from the latest low, another sign of potential support. This level may hold but it will depend on oil prices, a further fall could take the index to new lows. Even if oil prices bounce earnings expectations for the sector will remain low and may keep the index capped at resistance.


The Gold Index

The flight-to-safety trade may have fled out of gold today. The metal fell more than -1.25%, -$14.50, to hit levels near $1,075 and the lowest levels since the end of last year. Today's action may also be driven by the data; labor markets appear to be resilient with low inflation pointing to a stronger dollar. Add in expectations for additional FOMC rate hikes in 2016 and the outlook for gold remains bearish. Down side target is near $1,050 and the most recent lows so long as global tensions don't rise again.

The gold miners reacted as expected, falling more than -4% to reach previously set support target at $13.00. The ETF is falling hard on gold prices and could easily break below $13 but remains range bound for now. The indicators are pointing lower and suggest further testing of support but are also consistent with a range bound asset. This rang may hold for another week or two, the ECB meets next week and the FOMC the week and either could disrupt dollar/gold valuations.


In The News, Story Stocks and Earnings

The Dollar Index made gains today as risk-on appetite comes back to the market. Today's data, early earnings reports and expectations for the season helped to lift the index by roughly 0.5% intraday but left if below the most recent high near $99.50. Today's move may be short lived, the ECB meets next week and the FOMC the week, either of which could devalue the dollar. The ECB is not expected to increase QE or even allude to further QE and the FOMC is not expected to raise rates again so a chance for the euro to appreciate exists. The index remains range bound at this time with support near $98.25 and resistance just above $100; the indicators are consistent with a range but look a little suspicious to me. A fall below support could take this index down to $97 or lower and back to levels seen last summer.


JP Morgan reported earnings before the bell. The banking giant reported a mild beat on the revenue side that resulted in $1.32 in EPS, 5 cents above expectations. Quarterly profits rose 9% from last quarter, 12% from the same quarter last year, driven on strong core loan growth and consumer banking. Shares of the stock rose 1% in premarket trading and added to that after the opening bell. Today's action confirms support at the $57.50 level with mixed indicators. In the near term the indicators are rolling over, consistent with support, but longer term are weak and consistent with a retest of current lows or a new low. Signs of weakness include convergence in the bearish MACD peak and a bearish crossover of stochastic's lower signal line.


Tomorrow Wells Fargo, Citigroup, US Bancorp and a couple of small, regional banks will report. The general expectation is for growth in the sector and if today's report from JPM is a sign of what's to come this expectation will be met or exceeded. Today the Financial Sector SPDR gained more than 1.25% but remains near the bottom of a 15 month range with bearish indicators. The indicators may be peaking, beginning to rollover, but remain weak relative to the past 3-4 months. The ETF is trading below a potential resistance level near $21 that will likely hold if earnings do meet expectations and/or outlook is not good. A move above this level could take the index up to $23 in the near term.


Intel reported after the bell. The worlds largest computer chip maker reported better than expected earnings, revenue and guidance for the 1 st quarter and yet fell -3% in after hours trading. The move reverses gains made during the day and leaves the stock near the bottom of the three month range. This move is surprising, I'm interested to see how it trades tomorrow.


The Indices

Earnings season has begun and many of the reason to be fearful seem to have evaporated. Most of them are still lurking in the back ground but in light of what looks to be the actual end of a three quarter earnings recession. Today's action began a little shaky, but like any new born bull, after a few false starts got off to a ripping start. The indices all made substantial gains, led by the NASDAQ Composite. The tech heavy index advanced more than 2.5% and confirmed support at 4,550. Today's candle is a strong white candle and piercing pattern that could precede a bounce or reversal. The indicators have crested their bearish peak and are now rolling over, consistent with a bounce from support, but remain weak so caution is due. Upside targets for resistance are near 4,700 and then 4,800 with a retest of support within the near to short term due to to convergences in both MACD and stochastic.


The S&P 500 made the next largest gain in today's session, about 1.75%. The broad market index also created a large white candle with bullish overtones but the upper shadow reveals there are still sellers in the market. Today's action confirms support at 1,900 and the indicators confirm, both MACD and stochastic are both cresting a peak coincident with today's bounce from support. While confirming today's bounce, they are also weak and could easily lead to another test of support regardless of how high said bounce will move. Support target is 1,900, upside target is 1,950-2,000 with a chance for more should earnings season unfold favorably.


The Dow Jones Industrial Average posted a gain just over 1.50% in a move just below resistance. Today's action indicates potential support near 16,000, above target levels near 15,750 and a bullish sign if confirmed. The candle is long bodied and white, nearly engulfing the previous long black candle and in this situation suggestive the market has reached an extreme of bearishness. The indicators remain bearish and weak but also show early signs of reversal and consistent with such an extreme. If a rally continues, perhaps driven on positive earnings reports and diminishing market fear, the index could easily pop back above the long term trend line with a target near 17,250.


The Dow Jones Transportation Average was today's laggard with a gain of only 1.15%. Today's candle is not overly strong but does carry bullish overtones, as well as confirming near term support at the 6,600 level. The strength of this support is yet to be seen but the indicators are also suggestive of support. The MACD for one is showing an obvious divergence, stochastic is too but less obvious. This may signal nothing more than pause in the down trend or switch to range bound trading so it's still a little too soon to get bullish on this one. First target for resistance is 7,700, support is 6,600.


Today could be the day. The day the market revealed the bottom and the first best earliest chance to get into the next up trend. If it is, it is still too soon tell, and if the indicators can be trusted, another chance to get in at these levels will present itself, maybe toward the end of the earnings season.

No matter what else is going on the world earnings drive the stock market. We've had a correction driven on three quarters of weak/negative earnings growth, aided by global turmoil, and now the market is oversold and at support with brighter days on the horizon.

This season is likely to be better than expected, the last quarter of negative earnings growth and the lead-in to a year of expanding earnings growth; three reasons for me to remain bullish and optimistic of the future. Even so I remain ever so cautious.

Near term risks include earnings season, the ECB next week and then the FOMC the week after that.

Until then, remember the trend!

Thomas Hughes

 

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New Option Plays

Earnings Momentum Fuels New Highs

by James Brown

Click here to email James Brown


NEW DIRECTIONAL CALL PLAYS

Constellation Brands Inc. - STZ - close: 143.25 change: -0.88

Stop Loss: 138.25
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 1.2 million
Entry on January -- at $---.--
Listed on January 14, 2016
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Trade Description:
STZ was one of last year's best performing stocks with +45% gains in 2015. Consistently raising earnings and revenue guidance can do that for a stock. The company is seeing so much demand for their beer products that STZ just announced they're building a huge new brewery in Mexico. Meanwhile their wine and spirits business is seeing stronger margins due to recent acquisitions. Overall STZ is moving into 2016 with the wind at its back.

STZ is in the consumer goods sector. According to the company, "Constellation Brands is a leading international producer and marketer of beer, wine and spirits with operations in the U.S., Canada, Mexico, New Zealand and Italy. In 2014, Constellation was one of the top performing stocks in the S&P 500 Consumer Staples Index. Constellation is the number three beer company in the U.S. with high-end, iconic imported brands including Corona Extra, Corona Light, Modelo Especial, Negra Modelo and Pacifico. Constellation is also the world's leader in premium wine, selling great brands that people love including Robert Mondavi, Clos du Bois, Kim Crawford, Rex Goliath, Mark West, Franciscan Estate, Ruffino and Jackson-Triggs. The company's premium spirits brands include SVEDKA Vodka and Black Velvet Canadian Whisky... Based in Victor, N.Y., the company believes that industry leadership involves a commitment to brand-building, our trade partners, the environment, our investors and to consumers around the world who choose our products when celebrating big moments or enjoying quiet ones. Founded in 1945, Constellation has grown to become a significant player in the beverage alcohol industry with more than 100 brands in its portfolio, sales in approximately 100 countries, about 40 facilities and approximately 7,700 talented employees."

STZ has been killing it on the earnings front. They have beaten earnings the last three quarters in a row. Management has raised their guidance the last three quarters in a row. Their most recent earnings report was last week on January 7th. Analysts were expecting a profit of $1.30 a share on revenues of $1.62 billion. STZ beat estimates with a profit of $1.42 a shares. Revenues were up +6.4% to $1.64 billion. Strong beer sales has helped fuel double-digit shipment increases. The company announced they were building another brewery and raised their guidance again.

This bullish outlook sparked a couple of new price target upgrades ($172, $174 and $185). The stock soared to new highs and broke through key resistance near the $145.00 level on its earnings news and guidance. Shares have seen some profit taking since its spike to new highs. Now STZ is near support at one of its long-term trend lines of higher lows. The simple 50-dma should offer technical support at $140.40. Meanwhile the $140.00 level could offer some round-number, psychological support. Both of these are converging near its trend line of higher highs.

STZ underperformed the market today, which may mean more profit taking ahead. We want to buy calls on STZ as it nears support in the $140.00-140.50 area. Tonight we are listing a buy-the-dip trigger at $140.50 with a stop loss $138.25, just under its early January low.

Trigger @ $140.50

- Suggested Positions -

Buy the APR $150 CALL (STZ160415C150) current ask $4.50
option price is a current quote and not a suggested entry price.

Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.

Option Format: symbol-year-month-day-call-strike

Daily Chart:

Weekly Chart:



In Play Updates and Reviews

Markets Finally Bounce, Will It Continue?

by James Brown

Click here to email James Brown

Editor's Note:

The U.S. stock market finally delivered a decent oversold bounce. A rebound in crude oil prices and a bullish earnings report from JPMorgan Chase helped set the positive tone today.

DY has been removed. HRS hit our stop loss.


Current Portfolio:


CALL Play Updates

Digital Realty Trust Inc. - DLR - close: 78.36 change: +0.73

Stop Loss: 74.80
Target(s): To Be Determined
Current Option Gain/Loss: +0.0%
Average Daily Volume = 1.5 million
Entry on January 11 at $77.75
Listed on January 09, 2016
Time Frame: Exit PRIOR to February option expiration
New Positions: see below

Comments:
01/14/16: DLR dipped to $77.31 and bounced. Shares failed to keep pace with the broader market but that is okay. DLR has been outperforming the market for several days. I would be tempted to buy calls again on a rally above today's high (78.73).

Trade Description: January 9, 2016:
The last several days have been tough on investors. Stocks experienced a global market sell-off. This volatility and uncertainty could push investors into safer, high-dividend paying stocks. Currently the 10-year U.S. bond only yields 2.1%. That makes a stock like DLR, with a dividend yield above 4%, a lot more attractive. The company has a history of consistently raising its dividend over the last nine years in a row. The stock's relative strength doesn't hurt either.

DLR is in the financial sector. According to the company, "Digital Realty Trust, Inc. supports the data center and colocation strategies of more than 1,000 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia. Digital Realty's clients include domestic and international companies of all sizes, ranging from financial services, cloud and information technology services, to manufacturing, energy, gaming, life sciences and consumer products."

DLR has consistently beat Wall Street earnings expectations the last four quarters in a row. The last two quarters the company has also beat analysts' revenue estimates.

Earlier this week DLR provided their 2016 outlook and the company's forecast was slightly above expectations, which helped shares resist the market's sell-off.

Here is an excerpt from DLR's press release on their 2016 outlook:

Digital Realty expects 2016 core FFO (Funds from Operations) per share to be within a range of $5.45-$5.60, which represents a 7% increase at the midpoint from the midpoint of 2015 core FFO per share guidance. Foreign currency translation is expected to represent a headwind to core FFO per share of 1%-2% in 2016.

"We are seeing solid demand for Digital Realty's comprehensive set of data center solutions, which gives us confidence in our ability to achieve accelerating core FFO per share growth in 2016," commented Andrew P. Power, Digital Realty's Chief Financial Officer. "We also expect to generate double-digit AFFO per share growth (Adjusted Funds from Operations), driven by greater cash flow contribution from our core business, accretion from the Telx acquisition and the continued burn-off of straight-line rent. In short, the quality of earnings is improving, the growth in cash flow is accelerating, and we are optimistic about the prospects for our business in 2016 and beyond."

The recent relative strength in shares of DLR over the last few weeks has lifted shares above key resistance near the $75.00 level. It has also produced a buy signal on the point & figure chart, which is now forecasting a longer-term target of $102.00.

Friday saw DLR shares tag new all-time highs (@ 77.67). Tonight we are suggesting a trigger to buy calls at $77.75. Plan on exiting prior to February option expiration.

- Suggested Positions -

Long FEB $80 CALL (DLR160219C80) entry $1.10

01/11/16 triggered @ $77.75
Option Format: symbol-year-month-day-call-strike


PowerShares QQQ ETF - QQQ - close: 104.07 change: +2.17

Stop Loss: 103.85
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 35 million
Entry on January -- at $---.--
Listed on January 07, 2016
Time Frame: Exit PRIOR to February option expiration
New Positions: Yes, see below

Comments:
01/14/16: Stocks delivered a very overdue, oversold bounce on Thursday. The session started with another decline and the QQQ sank to $100.67 before rebounding. We remain on the sidelines with two different entry triggers suggested (see below).

Trade Description: January 7, 2016:
The stock market moves on emotion. Most of the time it is a tug-of-war between fear and greed. Occasionally one emotion takes control of the market and stocks move too fast one direction. That is where we are at today.

Fears of a global slowdown thanks to disappointing economic data out of China have increased. China has devalued their currency again, which does not generate confidence. Yesterday we had the nuclear weapon testing headlines from North Korea, which generates fear. We have plunging oil prices, which is fueling worries about deflation.

Odds of a snap back rally are growing and we want to be ready to catch it. One way to play it is the NASDAQ-100 ETF or the QQQ. These are very liquid, big cap names that fund managers can move in and out of more easily.

Thus far 2016 has been ruled by fear. We are only four trading days into the year and the NASDAQ composite is already down -6.4% completely erasing its +5.7% gain from 2015. The QQQ is down -6.2% in the last four days and it's down -8.25% from its December 29th peak just six trading days ago. That's too far too fast.

Tonight we are suggesting a short-term bullish trade when stocks bounce. They will bounce (eventually). Today's intraday high on the QQQ was $107.29. We are suggesting a trigger to buy calls at $107.35. We'll use an initial stop loss at $103.85. More conservative traders may want to use a stop loss closer to today's intraday low instead ($104.81).

Trigger @ $106.50, use an initial stop loss at $103.45

- Suggested Positions -

Buy the FEB $110 CALL (QQQ160219C110)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Buy-the-Dip Trigger @ $100.50, use an initial stop loss at $97.45

- Suggested Positions -

Buy the FEB $105 CALL (QQQ160219C105)

Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point(s).

01/09/16 Entry Strategy Update - Use TWO different entry triggers
One is a buy-the-dip trigger at $100.50 with a stop at $97.45 and the Feb $105 calls
The other is a trigger at $106.50 with a stop at $103.45 and the Feb $110 calls
Option Format: symbol-year-month-day-call-strike


SPDR S&P 500 ETF - SPY - close: 191.93 change: +3.10

Stop Loss: 179.65
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 128 million
Entry on January -- at $---.--
Listed on January 13, 2016
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
01/14/16: Stocks were due for a bounce and the SPY dipped toward short-term support near $187 before rebounding today. One day does not make a trend so current momentum remains lower. There is no change from last night's new play description.

Trade Description: January 13, 2016:
The stock market's sell-off seems to be getting worse. Constant worries about a slowing global economy and the potential for another currency devaluation in China have spooked investors. The nearly non-stop plunge in crude oil hasn't helped although at the moment it looks like the $30.00 a barrel level is offering some short-term support for oil. I wouldn't count on oil holding above $30 though.

In the U.S. we have the Federal Reserve that has begun a rate-hiking cycle seemingly at the wrong time as the U.S. economy slows down. The Atlanta Fed's Q4 GDP growth estimates have fallen to +0.8%. Meanwhile corporate earnings are forecasted to be negative for the second quarter in a row, which would be an "earnings recession" in the U.S.

All of these ingredients have come together in a bearish recipe to send stocks lower. Eventually stocks will bounce. The tone on Wall Street today felt "a little panicky" according to some market watchers. We could be getting close to a bottom (at least a short-term bottom). Tonight we are going to try and pick a trade to catch the bottom. This is typically called "catching a falling knife" and can be hazardous to your trading account. Consider this an aggressive, higher-risk trade. I suggest small positions to limit risk.

The SPY has potential support in the $187.00 area and again in the $182 region. I'm looking at a buy-the-dip trade near the lower level. The October 2014 low in the SPY was $181.92. The August intraday low was $182.40. Tonight I am listing a buy-the-dip trigger to buy calls on the SPY at $183.00. We'll start with a stop loss at $179.65.

Buy-the-dip Trigger @ $183.00 *small positions to limit risk*

- Suggested Positions -

Buy the MAR $190 CALL (SPY160318C190)

Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.

Option Format: symbol-year-month-day-call-strike


Sovran Self Storage Inc. - SSS - close: 109.38 change: -0.26

Stop Loss: 107.40
Target(s): To Be Determined
Current Option Gain/Loss: -36.8%
Average Daily Volume = 257 thousand
Entry on January 13 at $110.75
Listed on January 11, 2016
Time Frame: Exit PRIOR to earnings in mid February
New Positions: see below

Comments:
01/14/16: It was a disappointing session if you're bullish on SSS. Shares tested short-term support near $108.00 and its simple 20-dma before bouncing. Sadly the bounce in SSS paled in comparison to the broader market. SSS failed to close in positive territory while the rest of the market experienced a widespread gain. I am still suggesting investors wait for a rally above $110.75 before considering new positions.

Trade Description: January 11, 2016:
REIT stocks had a rocky year in 2015 as investors worried about the Federal Reserve raising rates. Well the Fed finally did raise rates in December and shares of SSS soared to new highs. This stock has been outperforming both its peers and the broader market. Last year the S&P 500 was flat (-0.7%) while the REIT ETF (symbol: IYR) lost -17.6%. Shares of SSS delivered a +22% gain last year and the bullish momentum continues in 2016.

SSS is part of the financial sector. According to the company, "Sovran Self Storage, Inc. is an equity REIT that is in the business of acquiring and managing self storage facilities. The Company operates over 500 self storage facilities in 25 states under the name Uncle Bob's Self Storage."

This is a relative strength play. SSS has rallied toward round-number resistance at $110.00. Shares spent the last several days consolidating sideways in the $105-110 zone. Now it looks poised to breakout. The point & figure chart is bullish and forecasting a long-term target at $130.00.

Readers might want to consider buying calls on a breakout past $110.00. However, the intraday high on December 30th was $110.60. We are suggesting a trigger to launch positions at $110.75.

FYI: SSS has an $0.85 dividend coming up soon. The ex-dividend date appears to be January 15th. The stock will likely gap down on Friday morning due to the dividend.

- Suggested Positions -

Long FEB $110 CALL (SSS160219C110) entry $3.40

01/13/16 triggered @ $110.75
Option Format: symbol-year-month-day-call-strike




PUT Play Updates


Currently we do not have any active put trades.




CLOSED BULLISH PLAYS

Dycom Industries - DY - close: 66.80 change: +0.47

Stop Loss: 68.45
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 729 thousand
Entry on January -- at $---.--
Listed on January 12, 2016
Time Frame: Exit PRIOR to earnings in late February
New Positions: see below

Comments:
01/14/16: We are cutting DY loose. Yesterday shares underperformed the market with a -6.6% plunge. Today the stock bounced but still underperformed the market with a +0.7% gain versus the S&P 500's +1.66% advance.

Readers might want to keep DY on their watch list for a breakout from its bearish channel but at the moment it remains firmly inside the channel (see chart).

Trade did not open.

01/14/16 removed from the newsletter, suggested entry was $73.75

chart:


Harris Corp. - HRS - close: 84.49 change: -0.91

Stop Loss: 84.90
Target(s): To Be Determined
Current Option Gain/Loss: -54.0%
Average Daily Volume = 927 thousand
Entry on January 05 at $88.15
Listed on January 04, 2016
Time Frame: Exit PRIOR to earnings in early February
New Positions: see below

Comments:
01/14/16: The profit taking in HRS continued on Thursday. Shares fell another -1.0% and broke support near $85.00 and its trend line of support (see chart). Our stop was hit at $84.90.

- Suggested Positions -

FEB $90 CALL (HRS160219C90) entry $2.65 exit $1.22 (-54.0%)

01/14/16 stopped out @ 84.90
01/05/16 triggered @ $88.15
Option Format: symbol-year-month-day-call-strike

chart: