NEW BEARISH Plays
Check Point Software - CHKP - close: 44.11 change: -0.21
Stop Loss: 45.01
Current Gain/Loss: unopened
Entry on November xx at $ xx.xx
Listed on November 8, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 4.0 million
New Positions: Yes, see below
Why We Like It:
CHKP appears to be stuck in a new long-term down trend of lower highs and lower lows. The big sell-off in mid October was a reaction to their earnings report. The results didn't seem that bad but CHKP was punished with a drop to new lows for the year. Since then the oversold bounce has lifted CHKP back toward support/resistance at the $45.00 level. Now the bounce is fading and CHKP is struggling with the larger trend of lower highs.
There is some short-term support at $44.00 and if CHKP breaks this level it's probably headed for the October low ($40.60) or lower. I am suggesting a trigger to open bearish positions at $43.80.
Trigger @ 43.80
Suggested Position: short CHKP stock @ (trigger)
- (or for more adventurous traders, try this option) -
buy the DEC $43 PUT (CHKP1222x43) current ask $1.40