Option Investor
New Plays

New Option Plays

HAVING TROUBLE PRINTING?
Printer friendly version
Call Options Plays
Put Options Plays
Strangle Options Plays
RL None None

New Calls

Ralph Lauren Polo - RL - cls: 63.11 change: -1.85 stop: 66.26

Company Description:
Polo Ralph Lauren Corporation is a leader in the design, marketing and distribution of premium lifestyle products in four categories: apparel, home, accessories and fragrances. (source: company press release or website)

Why We Like It:
Investors continue to worry about the consumer and almost anything related to retail is suffering for it. RL has a bearish pattern of lower highs and to make matters worse the stock just broke down under support near $63.50-64.00. Today's sell-off was fueled by strong volume, which is another bearish sign. Meanwhile the Point & Figure chart just produced a quadruple bottom breakdown sell signal and points to a $55 target. We are suggesting puts with RL under $64.00. Our target is the $58.00-57.00 range although odds are good the stock will see an oversold bounce near $60.00.

Suggested Options:
We are suggesting the January puts.

BUY PUT JAN 65.00 RL-MM open interest=1424 current ask $4.10
BUY PUT JAN 60.00 RL-ML open interest=1254 current ask $2.00

Picked on December 19 at $ 63.11
Change since picked: + 0.00
Earnings Date 02/07/08 (unconfirmed)
Average Daily Volume = 1.5 million
 

New Puts

None today.
 

New Strangles

None today.
 

New Play Archives