NEW BULLISH Plays
Ocwen Financial Corp - OCN - close: 50.51 change: +0.27
Stop Loss: 49.25
Current Gain/Loss: unopened
Entry on August -- at $--.--
Listed on August 07, 2013
Time Frame: 4 to 8 weeks
Average Daily Volume = 1.8 million
New Positions: Yes, see below
Why We Like It:
OCN is in the servicing and mortgage origination business.
The company reported earnings on August 1st and while the bottom line results missed estimates the revenue number was a beat. Revenues surged +150% from a year ago. Investors reacted by lifting shares to new all-time highs. Since then any profit taking has been mild, which might suggest a lack of sellers.
There is a very short-term trend of lower highs. I am suggesting a trigger to open bullish positions at $50.70, which should break the trend of lower highs. If triggered our multi-week target is $55.00. More aggressive traders could aim higher. The Point & Figure chart for OCN is bullish with a $63 target.
Trigger @ $50.70
Suggested Position: buy OCN stock @ (trigger)
- (or for more adventurous traders, try this option) -
buy the Sep $50 call (OCN1321i50) current ask $2.60