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  MSTR

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New Puts

Allergan - AGN - close: 73.09 chg: -2.30 stop: 76.05

Company Description:
Allergan, Inc., with headquarters in Irvine, California, is a technology-driven, global health care company providing specialty pharmaceutical products worldwide. Allergan develops and commercializes products in the eye care, neuromodulator, skin care and other specialty markets that deliver value to its customers, satisfy unmet medical needs, and improve patients' lives. (source: company website)

Why We Like It:
AGN is probably most famous now for its Botox product. Yet like most of the biotech sector the stock is losing ground. Shares have been fading under a steady trend of lower highs since late December. Now the stock is breaking down from its latest consolidation on volume that's double the norm. AGN's P&F chart is bearish and points to a $61.00 target. Short-term technicals are obviously bearish and its MACD is nearing a new sell signal. We think Friday's decline is a bearish entry point and we're targeting the October lows near $67.50.

Suggested Options:
We are suggesting the April puts.

BUY PUT APR 75 AGN-PO OI=2211 current ask $3.20
BUY PUT APR 70 AGN-PN OI= 563 current ask $1.00


 

Picked on March 13 at $ 73.09
Change since picked: - 0.00
Earnings Date 04/29/05 (unconfirmed)
Average Daily Volume = 777 thousand

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MicroStrategy - MSTR - close: 64.89 chg: -1.25 stop: 68.51

Company Description:
Founded in 1989, MicroStrategy is a global leader in business intelligence (BI) technology. MicroStrategy provides integrated reporting, analysis and monitoring software that helps the world's leading organizations make better business decisions every day. Companies use MicroStrategy to transform vast amounts of data into actionable information that enhances their performance, productivity and competitive edge. MicroStrategy's customers include the top twelve Fortune 500 global telecommunications companies, the top eight global pharmaceutical companies and nearly two-thirds of the top 50 global retailers. (source: company website)

Why We Like It:
MSTR is probably still famous (or infamous) for its incredible volatility back in the 1999-2000 years. The stock can still be volatile today and so we're slapping an "aggressive, high-risk" warning label on this play. The stock has been climbing, albeit a very rocky climb, over the last several months with a trend of higher lows. Currently MSTR has broken that trendline of support and its 50-dma. Plus its P&F chart is bearish with a $55.00 price target. Yet we don't trust it! This could just be a bear trap. So we plan to use a trigger to open the play. We want to see some confirmation of this breakdown. Our entry point to buy puts will be $63.49. That means MSTR will have to break down below its 100-dma as well. Until MSTR trades at or below our entry we'll sit out. If triggered our short-term target is the January lows near $55.00.

Suggested Options:
We are suggesting the April puts.

BUY PUT APR 65.00 EOU-PM OI= 880 current ask $4.40
BUY PUT APR 60.00 EOU-PL OI=1856 current ask $2.40
BUY PUT APR 55.00 EOU-PK OI= 865 current ask $1.35


 

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: - 0.00
Earnings Date 04/28/05 (unconfirmed)
Average Daily Volume = 659 thousand

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