- New Trades -
Capital One Financial Corp. - COF - close: 60.75
COF was a watch list candidate. The stock has been consolidating under resistance at the $60.00 level. The plan was to wait for shares to close above $60.50 and then buy calls the next day. The company reported earnings on October 18th, after the closing bell. Analysts were expecting a profit of $1.70 a share. COF delivered earnings of $2.01. Revenues surged +39% to 5.78 billion, which was also above estimates.
The market reacted by pushing COF past resistance at $60 and shares closed at a new multi-year high. Friday's close meets our entry point requirements. The plan is to open positions on Monday morning. The P&F chart is bullish with a $71 target. We are actually aiming for $74.00. I am moving our stop loss to $56.85.
COF can be somewhat volatile so we want to keep our position size small. We'll have to keep an eye on potential resistance at $70.00.
- Suggested Positions - (small positions)
OCT 22, 2012 - entry price on COF @ --.--, option @ -.--
symbol: COF1418a65 2014 JAN $65 call - current bid/ask $ 5.20/ 5.50
Chart of COF:
Current Target:$ 74.00
Current Stop loss: 56.85
Play Entered on: 10/22/12
Originally listed on the Watch List: 10/06/12