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New Plays
Long Plays
Short Plays
ARTC None
INTC  
ITG  
MOVE  
RYL  

Play Editor's Note: Here's the plan. Monday could still see some follow through lower as retail investors read the weekend headlines and decide to sell. This could provide a short-term wash-out and a temporary bottom. Note that I said "could" provide. However, after such a sharp sell-off all the major indices look oversold and due for a bounce. We think it will be a bounce we can trade for a few days. We're listing some bullish candidates below but most have triggers to try and catch a dip on Monday.


New Long Plays

ArthroCare - ARTC - close: 52.04 change: +1.56 stop: 48.49

Company Description:
Founded in 1993, ArthroCare Corp. is a highly innovative, multi-business medical device company that develops, manufactures and markets minimally invasive surgical products. (source: company press release or website)

Why We Like It:
It looks like ARTC has turned the corner. Shares spent two months in a bearish channel that bottomed at $45.00 in December. Now the stock has broken through resistance near $50 and its 200-dma (and the top of its channel). The stock displayed relative strength on Friday and readers may want to consider buying the stock right here at $52.00. We are suggesting that traders wait for a dip. Our suggested entry point to buy ARTC is the $50.50-49.50 zone. We will place our stop loss at $48.49 to start. Our short-term target is the $54.50-55.00 range, which looks like resistance with the 50-dma and 100-dma hovering nearby.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/14/08 (unconfirmed)
Average Daily Volume: 1.1 million

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Intel Corp. - INTC - cls: 22.67 change: -2.00 stop: 21.85

Company Description:
Intel, the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. (source: company press release or website)

Why We Like It:
Intel has just been crushed in the past few days. The stock has lost most than 17% since the late December high. We think the selling is a little overdone. We are suggesting that readers buy a dip into the $22.25-22.00 range. We'll try and limit our risk with a stop loss at $21.85. You could try and put yours closer to $22.00 if you need to. The $22.00 level looks like potential support. The August low was $22.09. Essentially this is a dead-cat bounce play and we're trying to pick the bottom. Now how many times have you heard us tell you "don't try and pick the bottom"? Hopefully you've heard that a lot. Since we are breaking the rules here this is a speculative, higher-risk play. You could always wait for signs of a bounce before initiating positions. When you look at INTC's chart you should think "that's a falling knife!" We'll try and capture a bounce back toward $24.00 and its 200-dma. Our target will be the $23.90-24.00 zone. We do not want to hold over the January 15th earnings report (still unconfirmed) and that only gives us seven trading days. If INTC does not hit our trigger on Monday we might remove the play.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/15/08 (unconfirmed)
Average Daily Volume: 57 million

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Invest.Tech.Group - ITG - cls: 47.99 chg: +1.43 stop: 45.90

Company Description:
Investment Technology Group, Inc., is a specialized agency brokerage and technology firm that partners with clients globally to provide innovative solutions spanning the entire investment process. (source: company press release or website)

Why We Like It:
Shares of ITG out performed the market on Friday partially due to an upgrade on Friday morning. However the stock was already out performing as it consolidated sideways near six-month highs. We are suggesting readers buy Friday's bounce. However, if there is a dip on Monday our preferred entry point would be a pull back toward $47.00. We're starting with a stop loss under last week's low and short-term support near $46.00. The $50 level might offer some overhead resistance but our target is the $52.00-52.50 range. We do not want to hold over the late January earnings report. FYI: The P&F chart is bullish with a $65 target.

Picked on January 06 at $47.99
Change since picked: + 0.00
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume: 606 thousand

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Move Inc. - MOVE - cls: 2.26 change: +0.04 stop: 2.14

Company Description:
Move, Inc. is the leader in online real estate with more than 6.9 million (1) monthly visitors to its online network of websites. (source: company press release or website)

Why We Like It:
Has MOVE finally hit bottom? The stock has been trading sideways for months with a floor under the stock near $2.20. Shares dipped to $2.15 on Friday morning before bouncing higher and actually closing positive. I'd like to say this is an all-time low for MOVE but shares were trading under $200 in 2005 and close to 50 cents back in 2003. Aggressive traders may want to buy the stock now following Friday's bounce. We're suggesting a trigger to buy MOVE at $2.32. If triggered our target is the $2.65-2.75 range. Just because this is a low-dollar stock

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/21/08 (unconfirmed)
Average Daily Volume: 1.0 million

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Ryland Group - RYL - cls: 22.16 chg: -2.12 stop: 19.49

Company Description:
With headquarters in Southern California, Ryland is one of the nations largest homebuilders and a leading mortgage-finance company. The company currently operates in 28 markets across the country and has built more than 270,000 homes and financed more than 230,000 mortgages since its founding in 1967. (source: company press release or website)

Why We Like It:
Many of you probably think we're crazy trying to go long a homebuilder. The industry still has hard times ahead of it. However, RYL is trying to form a bottom with its sideways trading between $20 and $29. Odds are good that the stock will bounce again near support at $20.00. We're suggesting readers buy the dip in the $20.25-20.00 zone. We'll try and reduce our risk with a stop loss under the November low at $19.49. If we are triggered at $20.25 our short-term target is the $23.90-24.00 range. We won't have a lot of time since we plan to exit ahead of the late January earnings report.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/23/08 (unconfirmed)
Average Daily Volume: 1.9 million
 

New Short Plays

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