NEW DIRECTIONAL PUT PLAYS
Charter Communications - CHTR - close: 121.26 change: -1.85
Stop Loss: 122.55
Current Option Gain/Loss: Unopened
Time Frame: Exit prior to April expiration
New Positions: Yes, see below
Why We Like It:
CHTR is a cable-TV service. Investors seem to have soured on CHTR after Time Warner Cable (TWC) chose Comcast instead of CHTR as a merger partner. It's also worth noting that stocks for all three companies have been falling lately.
Shares of CHTR recently broke down below support near $125 and now they're testing support near $120 and their late February lows. If this level breaks the next support level is $110. That just happens to coincide with the bearish price target on CHTR's bearish point & figure chart.
Tonight we are suggesting a trigger to open small bearish positions at $119.75. If triggered our target is $110.25. More conservative traders may want to wait for CHTR to trade below the August 2013 low at $119.00 or below the simple 300-dma (at $118.70) before initiating positions.
Trigger @ 119.75 *small positions*
- Suggested Positions -
Buy the Apr $120 PUT (CHTR1419P120) current ask $2.45
Point & Figure chart
Entry on March -- at $---.--
Average Daily Volume = 1.2 million
Listed on March 27, 2014