NEW BEARISH Plays
Jacobs Engineering Group - JEC - close: 46.25 change: -0.46
Stop Loss: 48.25
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Entry on October -- at $---.--
Listed on October 13, 2014
Time Frame: 3 to 6 weeks
Average Daily Volume = 1.0 million
New Positions: Yes, see below
Why We Like It:
JEC is part of the services sector. Although you might consider it an industrial considering what they do. JEC provides technical services and construction services around the world. They were founded in 1947 and now have about 200 offices around the world.
Unfortunately for JEC most of the world is seeing an economic slowdown. That is pressuring sales. JEC is developing a trend of missing earnings and has missed Wall Street's EPS estimate four quarters in a row.
The stock started to see an oversold bounce in early October but that bounce has stalled under its 10-dma and the $48.00 area. Now JEC is down -25.8% this year and poised to continue its underperformance.
I do want to note that the timing of this trade might be a little aggressive. Momentum is clearly lower but the major market indices are starting to look a little oversold and could bounce. Traders may want to start this trade with small positions to limit their risk.
We are suggesting a trigger to open bearish positions on JEC at $46.15.
Trigger @ $46.15 *consider small positions to limit risk*
- Suggested Positions -
Short JEC stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the NOV $47.50 PUT (JEC141122P47.50) current ask $2.50
Option Format: symbol-year-month-day-call-strike