NEW BEARISH Plays
Red Robin Gourmet Burgers - RRGB - close: 29.80 change: -1.18
Stop Loss: 31.05
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below
Why We Like It:
RRGB runs a chain of restaurants across the country. Unfortunately rising commodity prices should be squeezing margins and slowing retail spending will likely hit sales. The combination should be bearish for RRGB. Shares just broke down under its six-week trend of higher lows.
I am suggesting new bearish positions now at current levels. Our target is $26.00.
FYI: The Point & Figure chart for RRGB is bearish with a $22.00 target.
Suggested Position: short RRGB stock @ (the open)
- or -
buy the Aug $30 PUT (RRGB1218T30) current ask $1.50
Entry on July xx at $ xx.xx
Earnings Date 08/09/12 (unconfirmed)
Average Daily Volume = 170 thousand
Listed on July 23, 2011