Option Investor
New Plays

New Option Plays

Printer friendly version
Call Options Plays
Put Options Plays
HAR None

New Calls

Harman Intl - HAR - close: 102.39 chg: +0.12 stop: 98.99

Company Description:
Harman International Industries, Incorporated (www.harman.com) is a leading manufacturer of high-quality, high fidelity audio products and electronic systems for the automotive, consumer and professional markets. (source: company press release or website)

Why We Like It:
HAR has recently broken out of a six-week consolidation and looks poised to begin a new leg higher. Market wise we're feeling a bit cautious. October is infamous for its volatility and we tend to see market declines in the first half of the month. We're willing to speculate on HAR because the stock tends to march to the beat of its own drum instead of following lock step with the major market averages. Today's dip to and bounce from round-number support near $100.00 looks like a great entry point to consider short-term bullish positions. We say short-term because HAR is expected to report earnings around October 19th (so far it's an unconfirmed report date). We do not want to hold over the report even though last time (in August) the stock exploded higher after guiding earnings higher. Technically HAR looks positive with a new MACD buy signal and a Point & Figure chart that has recently produced a new buy signal that points to a $114 target. We're going to set the stop loss at $98.99 but more conservative traders may want to set their stop near $99.90 instead to really minimize any risk. If HAR did traded under $99.90 we'd probably be looking for the exits. HAR can be volatile so we're going to aim for a move into the $109.00-110.00 range.

Suggested Options:
Readers can choose between the October or November strikes. Just remember that we plan to exit ahead of HAR's October 19th earnings report. We're suggesting the November calls.

BUY CALL NOV 100.00 HAR-KY OI=197 current ask $8.10 (last 6.70)
BUY CALL NOV 105.00 HAR-KA OI=207 current ask $5.40 (last 4.70)
BUY CALL NOV 110.00 HAR-KB OI=200 current ask $3.40 (last 2.45)
*Double check these prices with your broker!

Picked on October 03 at $102.39
Change since picked: + 0.00
Earnings Date 10/19/05 (unconfirmed)
Average Daily Volume = 720 thousand

New Puts

None today.

New Play Archives