NEW DIRECTIONAL CALL PLAYS
Tiffany & Co - TIF - close: 78.23 change: +1.38
Stop Loss: 74.15
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
Luxury goods retailer TIF has spent two weeks consolidating its gains. In just the last couple of sessions it looks like shares have broken the short-term bearish trend of lower highs. TIF was definitely showing some relative strength on Monday. Friday's better than expected consumer sentiment figures should bode well for retailers.
I am suggesting we buy calls on TIF tomorrow morning but only if both TIF and the S&P 500 index open positive. We'll use a stop loss under Thursday's low but more conservative traders might want to consider a stop closer to the $76 level instead.
The $80.75-81.00 zone is short-term resistance but we are aiming for $84.25. Please note that we do not want to hold over the late November earnings report.
FYI: The Point & Figure chart for TIF is bullish with a $103 target.
*See Entry Details Above*
- Suggested Positions -
buy the DEC $80 call (TIF1217L80) current ask $3.65
Entry on November xx at $ xx.xx
Earnings Date 11/29/11 (unconfirmed)
Average Daily Volume = 2.2 million
Listed on November 14, 2011