NEW DIRECTIONAL PUT PLAYS
Marvel Entertainment - MVL - close: 38.67 change: -0.23 stop: 40.01
Why We Like It:
MVL has delivered quite a ride with the stock surging from $23 in March to $41.00 last week. Unfortunately for the bulls it appears that momentum is waning fast. Last week's performance has produced a big bearish reversal pattern. One a short-term basis the stock has support near $38.00. I am suggesting a trigger to buy puts at $37.90. If triggered our target is $34.10 as the $34.00 level could be support. I'm listing a stop loss at $40.01 but more conservative traders might be able to use a tighter stop at $39.55 or just above $39.00. Nimble traders may want to try and launch put positions on a failed rally in the $39.50-40.00 zone.
Trigger at $37.90. I am suggesting the September puts.
BUY PUT SEP 40.00 MVL-UH open interest=1208 current ask $2.30
BUY PUT SEP 35.00 MVL-UG open interest=2571 current ask .50
Picked on August xx at $ xx.xx <-- TRIGGER @ 37.90
Change since picked: + 0.00
Earnings Date 11/04/09 (unconfirmed)
Average Daily Volume = 710 thousand
Listed on August 10, 2009