Option Investor
New Plays
Click here to email James
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
BCSI None

Play Editor's Note: A few equities we're watching for new entry points are DVY, ROM, and NVDA. All three might be bullish candidates on a dip.


New Long Plays

Blue Coat Sys. - BCSI - close: 23.65 chg: +2.54 stop: 20.85

Company Description:
Blue Coat secures Web communications and accelerates business applications across the distributed enterprise. Blue Coats family of appliances and client-based solutions deployed in branch offices, Internet gateways, end points, and data centers provide intelligent points of policy-based control enabling IT organizations to optimize security and accelerate performance between users and applications. (source: company press release or website)

Why We Like It:
The rally in BCSI was pretty impressive today. Shares broke through technical resistance at the 50-dma and broke through price resistance near $22.25. Volume came in above average on the move. Shares definitely look poised to run higher after building what appears to be a significant base over the last several weeks. We want to buy BCSI just not right here. Today's 12% gain looks a little overdone. We're suggesting readers buy a dip in the $22.50-22.25 zone. More conservative may want to wait for the lower edge of that range. If triggered at $22.50 our first target is the $24.95-25.00 range. Our second target will be the $27.00-27.50 zone but BCSI will have to deal with potential resistance at its 200-ema and 100-dma. FYI: The most recent data lists short interest at 13% of the 36.6 million-share float.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/29/08 (unconfirmed)
Average Daily Volume: 1.2 million
 

New Short Plays

None today.
 

Premier Investor New Play Archives