Option Investor
New Plays
Printer friendly version
New Plays
Long Plays
Short Plays

New Long Plays

None today.

New Short Plays

Laserscope - LSCP - close: 20.16 chg: -0.26 stop: 21.55

Company Description:
Laserscope designs, manufactures, sells and services on a worldwide basis an advanced line of minimally-invasive medical products including medical laser systems and related energy delivery devices for the office, outpatient surgical center, and hospital markets. (source: company press release or website)

Why We Like It:
Shares of LSCP seem to have been withering under a long-term trend of lower highs but they have found support in the $20.00 region for the last six months. That support at $20.00 is now in jeopardy. The company recently reported earnings and while LSCP beat the estimates by a penny they did not provide a very inspiring guidance. The markets reacted negatively and LSCP is on the verge of a breakdown under the $20.00 mark. The Point & Figure chart is already bearish with a $16.00 target but if LSCP drops under $20.00 it will produce a new triple-bottom breakdown sell signal. We are going to suggest a trigger to short LSCP at $19.95. If triggered we're going to target the $17.55-17.45 range although more aggressive traders may want to aim lower. Please note that this might be considered a higher-risk, more aggressive play due to the short interest in LSCP. The latest data puts short interest at 21% of its 20.4 million-share float. This much short interest provides a big risk for a short squeeze.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/01/06 (confirmed)
Average Daily Volume: 424 thousand

Premier Investor New Play Archives