NEW BEARISH Plays

ValueClick, Inc. - VCLK - close: 20.19 change: -0.71

Stop Loss: 21.05
Target(s): 18.05
Current Gain/Loss: unopened

Entry on October -- at $--.--
Listed on October 07, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.2 million
New Positions: Yes, see below

Company Description

Why We Like It:
VCLK is in the Internet advertising industry (a.k.a. online marketing). Shares were surging in spring of 2013 and came close to their all-time closing highs. Then the stock was crushed on May 8th after VCLK reported earnings and management guided lower. The stock was hammered lower again with another big gap down when they reported earnings in early August and management guided lower again. Now after almost two months of trying to find support we are seeing VCLK breakdown to new multi-month lows.

The $20.00 level could be potential round-number, psychological support. I doubt that it is but just to be safe we're suggesting a trigger to open bearish positions at $19.85. If triggered our target is $18.05.

Trigger @ 19.85

Suggested Position: short VCLK stock @ (trigger)

- (or for more adventurous traders, try this option) -

Buy the NOV $20 PUT (VCLK1316w20) current ask $1.35

Annotated chart: