Option Investor
New Plays
Click here to email James
Printer friendly version
New Plays
Long Plays
Short Plays
None SSS

Play Editor's note: A few stocks that caught my eye as potential shorts were CBS, CTSH, and MAA. Unfortunately, CTSH and MAA both report earnings on February 7th.

New Long Plays

None today.

New Short Plays

Sovran Self Storage - SSS - cls: 38.31 chg: -0.59 stop: 40.41

Company Description:
Sovran Self Storage, Inc. is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self-storage facilities. The Company operates 355 self-storage facilities in twenty-two states under the name "Uncle Bob's Self Storage". (source: company press release or website)

Why We Like It:
SSS is a self storage company that looks stuck in a bearish trend of lower highs and lower lows. The stock just produced a bull trap with a breakout over resistance at $40 and its 50-dma but this proved to be a fake. The stock has reversed and is poised to breakdown under short-term support at $38.00. We are suggesting readers short SSS at $37.90. If triggered we are listing two targets. Our first target is the $35.10 mark since the $35 level is probably round-number support. However, given the trend of lower lows we're setting a second target at $33.00. This is a little aggressive given our short-term time frame. SSS is due to report earnings on February 13th (unconfirmed) and we do not want to hold over the report. FYI: The P&F chart is bearish with a $32 target. The most recent data puts short interest at 7.2% of the 20.99 million-share float.

Picked on February 06 at $38.31
Change since picked: + 0.00
Earnings Date 02/13/08 (unconfirmed)
Average Daily Volume: 170 thousand


Xerox Corp. - XRX - cls: 15.13 chg: -0.10 stop: 16.01

Company Description:
Xerox Corporation (NYSE:XRX) is the world's leading document management technology and services enterprise. A $17 billion company, Xerox provides the document industry's broadest portfolio of offerings. (source: company press release or website)

Why We Like It:
XRX has seen a huge rebound from its January lows and the rally stalled right at resistance in the $15.50-16.00 zone. Now shares are starting to look vulnerable again. Technical indicators are turning bearish. We are suggesting readers short XRX at $14.95. If triggered our short-term target is the $13.55 mark. We are starting with a stop loss at $16.01 but more conservative traders could try and play with a much tighter stop near $15.56. XRX's Point & Figure chart is bearish with a $10.50 target. The most recent data listed short interest at just 0.6% of the float.

Picked on February xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/24/08 (confirmed)
Average Daily Volume: 5.9 million

Premier Investor New Play Archives