NEW BULLISH Plays
Mylan, Inc. - MYL - close: 21.20 change: -0.20
Stop Loss: 19.70
Target(s): 21.90, 22.90
Current Option Gain/Loss: unopened
Time Frame: 12 to 14 weeks
New Positions: Yes, see trigger
Mylan Inc. ranks among the leading generic and specialty pharmaceutical companies in the world and provides products to customers in more than 140 countries and territories. The company maintains one of the industry's broadest and highest quality product portfolios supported by a robust product pipeline; operates one of the world's largest active pharmaceutical ingredient manufacturers; and runs a specialty business focused on respiratory, allergy and psychiatric therapies.
(source: company press release or website)
Why We Like It:
Shares of this generic drug maker are trending higher. In the past two weeks MYL has broken out from a six-week consolidation pattern, that already had a bullish trend of higher lows. MYL could end up retesting its 2010 highs in the first quarter.
I am suggesting we launch bullish positions on a dip at $20.65.
The December 13th low was $19.79. I'm suggesting a stop loss at $19.70.
The most recent data listed short interest at 12% of the 287 million-share float. Any significant rallies could fuel some short covering.
FYI: The Point & Figure chart for MYL is bullish with a $33 target.
Trigger to buy-the-dip @ $20.65
Suggested Position: Buy MYL stock @ $20.65
- or -
Buy the 2011 April $20.00 calls (MYL1116D20)
Entry on December xx at $xx.xx
Earnings Date 02/24/11 (unconfirmed)
Average Daily Volume: 9.0 million
Listed on December 20th, 2010