In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates:
SYK, UA, LNN, NKE, LH, WFM, FFIV, ORLY, CTSH, FISV, MCD, and XOM
NEW DIRECTIONAL CALL PLAYS
Coach, Inc. - COH - close: $76.05 change: +0.77
Stop Loss: 73.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below
Why We Like It:
The RLX retail index continues to move higher and added +0.4% today. This sector-specific index is just a couple of points away from another new record high. Helping drive the sector higher is strength in Coach. COH has bounced back to challenge its own high set two weeks ago.
I am suggesting we launch new bullish positions when COH trades at $76.75 or higher. We'll use a stop loss at $73.75. Our target is $82.50 although don't be surprised if shares pause and pull back a bit when they initially test $80.00. You'll notice the chart below has a bull-flag consolidation pattern that COH is just now starting to breakout from.
FYI: The Point & Figure chart for COH is bullish with a long-term $109 target.
Trigger @ $76.75
- Suggested Positions -
buy the Mar $75 call (COH1217c75) current ask $2.25
- or -
buy the Apr $77.50 call (COH1221D77.5) current ask $2.20
Entry on February xx at $ xx.xx
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 2.7 million
Listed on February 27, 2012