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New Plays
Long Plays
Short Plays
COH None
CWTR  
DUG  
GME  

Play Editor's Note: Historically September is the worst month for stocks, especially the second half of September. This should make you ask why would we be adding new bullish positions at this time? Good question! We suspect that the markets experienced their September-October sell-off a bit early with the big market decline in August. Second, the Federal Reserve appears poised to launch a new series of rate cuts. While this will be offset by the fear that the U.S. is in or rapidly heading into a recession, the market usually looks past the present to the future. It's a well-known market maxim that you "don't fight the fed." We expect that the markets will remain volatile but if we can get past this week with the Fed meeting and a number of financial and broker earnings reports then the path of least resistance is likely to be up. More conservative traders might feel safer to just step aside and wait until Wednesday before considering any new positions.


New Long Plays

Coach Inc. - COH - cls: 47.94 change: +0.46 stop: 44.45

Company Description:
Coach, with headquarters in New York, is a leading American marketer of fine accessories and gifts for women and men, including handbags, women's and men's small leathergoods, business cases, weekend and travel accessories, footwear, watches, outerwear, scarves, sunwear, jewelry, fragrance and related accessories. (source: company press release or website)

Why We Like It:
We noticed that COH is breaking out over technical resistance at its 100-dma and 200-dma near $47.50. The stock is also breaking out past its bearish trend of lower highs, which is very easy to see on the P&F chart (look below). We want to see a little bit more confirmation so we're suggesting a trigger to buy COH at $48.31. If triggered our target is the $51.85-52.00 range. More aggressive traders could aim for the April highs near $54.00. The P&F chart points to a $63 target. We do not want to hold over the late October earnings report. FYI: An alternative entry point would be to buy a dip in the $46.00-46.25 zone.

Picked on September xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/24/07 (unconfirmed)
Average Daily Volume: 5.0 million

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Coldwater Creek - CWTR - cls: 12.50 change: +0.30 stop: 10.99

Company Description:
Coldwater Creek is an integrated multi-channel retailer of women's apparel, jewelry, gifts and accessories through a growing number of full-line retail stores across the nation, an e-commerce Web site at http://www.coldwatercreek.com, and direct-mail catalogs. (source: company press release or website)

Why We Like It:
The big gap down in August was due to CWTR missing the earnings estimates and missing the revenue estimates. The selling continued until the stock hit an intraday low of $11.09, which looks awfully close to its $11.00 P&F bearish price target. Now the analyst community is starting to upgrade the stock and we're starting to hear rumors that CWTR is a takeover candidate. It certainly looks like CWTR has put in a bottom over the last week. We're suggesting long positions now and we'll stick a stop loss under the recent lows. We have two targets. Our first target is the bottom of the gap down in the $13.90-14.00 range. Our second target is the $14.90-15.00 range.

Picked on September 16 at $12.50
Change since picked: + 0.00
Earnings Date 11/20/07 (unconfirmed)
Average Daily Volume: 3.1 million

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UltraShort Oil & Gas - DUG - cls: 43.76 chg: -0.32 stop: 41.45

Company Description:
The DUG is the UltraShort Oil & Gas ProShares. This "fund" is designed to move twice the inverse of the daily move in the Dow Jones U.S. Oil & Gas Index.

Why We Like It:
If you read tonight's market wrap then you know we're expecting a sharp correction in the price of crude oil this week. A great way to play it will be the DUG. We're suggesting bullish positions now. We have two targets. Our first target is the $49.50-50.00 range. Our second, more-aggressive target is the $52.50-54.00 range.

Picked on September 16 at $43.76
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume: 218 thousand

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Gamestop - GME - close: 51.86 chg: +2.05 stop: 49.35

Company Description:
Headquartered in Grapevine, TX, GameStop Corp. is the world's largest video game and entertainment software retailer. The company operates over 4,800 retail stores across the United States and in sixteen countries worldwide. (source: company press release or website)

Why We Like It:
The video game market is already larger than the movie industry here in the U.S. The sector received some additional news on Friday with the latest report showing sales soared 46% in August 2007. Fueling the move was the most recent addition to the Madden football series. Odds are good that GME could see more momentum as Microsoft's Halo 3 is set to launch on September 25th, 2007. We are suggesting a trigger to buy the stock at $52.10. If triggered our target is the $57.00-60.00 range.

Picked on September xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/21/07 (unconfirmed)
Average Daily Volume: 2.4 million
 

New Short Plays

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