NEW DIRECTIONAL CALL PLAYS
Six Flags Entertainment - SIX - close: 79.34 change: +0.25
Stop Loss: 77.95
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
SIX is an amusement park company. They own theme parks, water parks, and zoological parks. Looking back it seems that SIX's IPO back in 2010 would have been one to buy. The stock is up significantly from its 2010 lows near $16.00. The company's latest earnings report was bullish with a strong beat and revenues coming in better than expected. Q1 park attendance was well above expectations.
Not only does the stock have bullish momentum but it's also a high-dividend play with a 4.6% yield. Plus, SIX is scheduled to do a 2-for-1 stock split on June 27th. Shares will begin trading ex-dividend on May 28th. The quarterly cash dividend should be 90 cents.
I would probably label this trade a higher-risk, more aggressive trade. Shares of SIX have been volatile in recent weeks. Just look at the big swings in April. Yet SIX has recovered and now it's poised to breakout of its short-term $78-80 trading range.
We are suggesting a trigger to open small bullish positions at $80.25. If triggered our target is $86.00. FYI: The Point & Figure chart for SIX is bullish with a $96 target.
Trigger @ $80.25 *Small Positions*
- Suggested Positions -
buy the Jun $80 call (SIX1322F80) current ask $1.55
Entry on May -- at $---.--
Average Daily Volume = 418 thousand
Listed on May 20 2013