NEW DIRECTIONAL PUT PLAYS
CH Robinson Worldwide - CHRW - close: 55.73 change: +0.61
Stop Loss: 56.65
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
CHRW is in the transportation sector. The stock has struggled in recent weeks and been downgraded twice just this month. The $56.00-55.75 area was significant support and the breakdown several days ago is very bearish. The stock market's bounce has allowed CHRW an oversold bounce back to prior support and now new resistance.
This looks like a great entry point to launch bearish positions with today's intraday pullback from resistance near $56.00. I am suggesting a trigger to buy puts at $55.45. If triggered our target is $50.50 but we might adjust it down the road. The 2012 low was $50.81 and could be support.
FYI: The Point & Figure chart for CHRW is bearish with a $48 target.
NOTE: The July options only have three weeks left.
Trigger @ 55.45
- Suggested Positions -
Buy the Jul $55 PUT (CHRW1320S55) current ask $0.80
- or -
Buy the Aug $55 PUT (CHRW1317T55) current ask $1.85
Entry on June -- at $---.--
Average Daily Volume = 1.5 million
Listed on June 26, 2013