NEW DIRECTIONAL PUT PLAYS
Rock-Tenn Co. - RKT - close: 101.81 change: -1.59
Stop Loss: 105.25
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on January 28th
New Positions: Yes, see below
Why We Like It:
RKT is in the consumer goods sector. The company sells consumer packaging products. Unfortunately for shareholders this stock produced a very definite top back in the August-September time frame last year. Since then RKT has developed a bearish pattern lower highs and lower lows. The most recent oversold bounce has just failed near resistance around $105 and its 100-dma and 150-dma.
There is a lot of congestion in the $100-95 area but we suspect that RKT could retreat back toward $95.00. I am suggesting bearish positions now at the opening bell tomorrow. Our target is $96.00.
- Suggested Positions -
Buy the FEB $100 PUT (RKT1422N100) current ask $3.90
Entry on January -- at $---.--
Average Daily Volume = 656 thousand
Listed on January 08, 2014