NEW BULLISH Plays
World Wrestling Entertainment - WWE - close: 14.36 change: +0.11
Stop Loss: 13.75
Target(s): 14.95, 16.40
Current Option Gain/Loss: unopened
Time Frame: 10 to 12 weeks
New Positions: Yes, see trigger
World Wrestling Entertainment, Inc., a publicly traded company (NYSE:WWE - News), is an integrated media organization and recognized leader in global entertainment. The company consists of a portfolio of businesses that create and deliver original content 52 weeks a year to a global audience. WWE is committed to family-friendly, PG content across all of its platforms including television programming, pay-per-view, digital media and publishing. WWE programming is broadcast in more than 145 countries and 30 languages and reaches more than 500 million homes worldwide. The company is headquartered in Stamford, Conn., with offices in New York, Los Angeles, Chicago, London, Shanghai, Singapore, Tokyo, and Mexico City.
(source: company press release or website)
Why We Like It:
It looks like WWE has found a bottom. Shares were hammered back in August after the company missed its earnings estimates. Now WWE has spent over three months building a new base in the $14-13.50 zone. The recent breakout could be the beginning of a new leg higher. Aggressive traders could launch positions now. I am suggesting we wait and use a trigger to open bullish positions at $14.10. We'll start with a stop loss at $13.75, under the 50-dma. Our first target is $14.95. Our second, longer-term target is $16.40.
Trigger @ $14.10
Suggested Position: Buy WWE stock @ $14.10
- or -
Buy the 2011 April $15.00 calls (WWE1116D15)
*Note: The call options on WWE have very large spreads, making them a higher-risk trade.
Entry on December xx at $xx.xx
Earnings Date 02/10/11 (unconfirmed)
Average Daily Volume: 242 thousand
Listed on December 9th, 2010