Cigna - CI - close: 139.95 chg: -0.11 stop: 134.75 *new*
Volume has been declining on CI's sideways consolidating near $140. Shares remain under short-term resistance at its 10-dma and we suspect the next move will be down. Our suggested entry range to buy calls is the $137.50-135.00 range. The newsletter will use a trigger at $137.49 to "open" the play. The stock should have support near $135 and its rising 50-dma (now at $135.70). We suggest that readers watch the initial pull back for signs of a bounce before initiating positions. If triggered our target is the $145.00-146.00 range. We are suggesting a stop loss under the 50-dma.
BUY CALL APR 135 CI-DG open interest=1669 current ask $7.80
Picked on February xx at $ xx.xx <-- see TRIGGER
ESSEX Prop. - ESS - cls: 129.35 chg: +2.04 stop: 125.95
REIT stocks were bouncing on Friday. Shares of ESS managed a 1.6% rebound but volume shrank back to normal levels, which erodes some of the confidence behind the rebound. We want to remind readers that the sell-off over the last few weeks has done a lot of technical damage and the P&F chart looks very bearish. We are only trying to catch a bounce back toward what looks like resistance in the $137-140 zone. We're suggesting a trigger to buy calls at $130.26. If triggered our target is the $$137.00-140.00 range, which is where ESS will encounter its 50-dma again.
BUY CALL APR 125 ESS-DE open interest= 3 current ask $6.80
Picked on March xx at $ xx.xx <-- see TRIGGER
Noble Energy - NBL - close: 58.60 chg: +0.41 stop: 55.75
NBL managed to bounce anyway in spite of a pull back in crude oil prices on Friday. Traders bought the dip near the stock's rising 10-dma and exactly where we suggested readers look for a new entry point in the $58.00-57.50 range. If you missed it on Friday we'd still consider new entry points now. More aggressive traders may want to put their stops under $55.00. We do expect some resistance near $60.00 but our target is the $62.00-62.50 range.
BUY CALL APR 55.00 NBL-DK open interest=130 current ask $4.80
Picked on March 06 at $ 58.02
Ashland Inc. - ASH - cls: 63.79 chg: +0.17 stop: 67.55
Volume continues to come in low on ASH's oversold bounce, which is usually a bearish signal. We would watch for a failed rally under the stock's descending 10-dma (near $64.65) or a failed rally under $65.00 and its simple 200-dma as a new entry point to buy puts. Overall the pattern continues to look bearish given ASH's breakdown below significant levels of support in early March. More conservative traders may want a tighter stop loss. Our target is the $60.50-60.00 range.
Picked on March 04 at $ 65.82
Bausch Lomb - BOL - cls: 51.50 change: -0.16 stop: 52.51
Good news. BOL produced yet another failed rally in the $52.00-52.20 range. The stock spiked higher at Friday's open and then quickly lost ground. The move is technically a bearish engulfing candlestick pattern, which is usually a bearish reversal. Aggressive traders may want to consider new put positions now. We're sticking to our plan and waiting for a breakdown under support near $50.00. We're suggesting a trigger to buy puts at $49.49. More conservative traders may want to wait for a decline under $49.00 to lessen the risk that we'll be triggered on an intraday spike lower. If we are triggered at $49.49 our target will be the $44.00-42.50 range.
Picked on March xx at $ xx.xx <-- see TRIGGER
Harman Intl - HAR - close: 98.57 change: +0.25 stop: 102.01
The oversold bounce in HAR continued on Friday but shares have been struggling with the $99.00 level and short-term technical resistance at its 10-dma. Volume has also fallen away rather dramatically on the rebound, which is usually bearish. We would use a failed rally from here or under the $100 level as a new bearish entry point to buy puts on HAR. Our target is the $92.50-90.00 range near its simple 200-dma. FYI: The P&F chart points to a very bearish $80 target.
BUY PUT APR 100 HAR-PY open interest=2338 current ask $3.80
Picked on March 04 at $ 97.49
MarineMax - HZO - close: 22.05 change: +0.15 stop: 23.06
HZO's bounce back above what should have been resistance at the $22.00 level makes us cautious. Yet the stock remains under its trendline of resistance (see chart). More conservative traders may want to tighten their stop losses. We're not suggesting new positions at this time. Our target is the $20.25-20.00 range. FYI: It may be worth noting that HZO has a high amount of short interest. The latest data (February) puts short interest at almost 24% of the stock's 16.8 million-share float. That definitely increases the risk of a short squeeze should the stock unexpectedly rally and breakout higher.
Picked on February 11 at $ 22.59