In addition to tonight's new candidate, readers may want to keep an eye on LRCX, F, and ATVI as possible LEAPS candidates.
Short-term traders may want to consider putting these stocks on their watch list: PETM, KEX, and UA. They appear to offer some potential but they do not have LEAPS options available.
- New Trades -
Kimberly-Clark Corp. - KMB - close: 69.71
Why We Like It:
KMB is known for a number of major brands that range from diapers to facial tissues, and healthcare supplies. The stock has been a slow but consistent winner over recent months. This pull back toward the $68-69 area looks like a bullish entry point.
The stock market has been a volatile place lately and investors could be drawn to KMB's more quiet trend and steady dividend yield (around 3%). I will point out that KMB does have long-term resistance in the $73.00-73.50 area. Therefore we will only open small (half-sized) positions now. When KMB closes above $74.00 we'll reconsider adding new positions to this play. Our long-term target is $79.75 but we'll readjust it as the play progresses. The Point & Figure chart is currently suggesting a long-term target of $98.00.
We'll open our small position on Monday morning. You could choose to wait for another dip toward the $68 level instead. We're listing this trade with a stop loss at $65.75.
FYI: KMB does have 2014 options available but the spreads are too wide at this time.
NOTE: KMB does not move very fast. Investors may want to try and maximize their returns by changing this into a vertical (a.k.a. calendar) spread.
- Suggested Positions -
Nov 07, 2011 - entry price on KMB @ --.--, option @ -.--
symbol: KMB1319A75 2013 JAN $75 call - current bid/ask $ 1.90/ 2.10
Chart of KMB:
Current Target: $79.75
Current Stop loss: 65.75
Play Entered on: 11/07/11
Originally listed in the New Plays 11/05/11