- New Trades -
Avago Technologies - AVGO - close: 44.72
AVGO has been on our watch list since late September. The company is in the technology sector. AVGO makes semiconductor devices, including parts for some very poplar smartphones. Once the stock broke through resistance near $40.00 back in September the stock set a string of new record highs. We've been waiting for a correction to buy on weakness. The plan was to buy calls if AVGO could dip to $43.00. Well shares hit $43.10 on Friday morning before bouncing. That's close enough for us.
I am suggesting we take advantage of AVGO's three-week correction lower. We want to buy calls at the opening bell on Monday, November 11th. We will start with a stop loss at $39.40. More conservative traders may want to use a stop closer to the $41.50-42.00 area instead. Our long-term target is $55.00.
Please note that AVGO is due to report earnings in late November. There is no confirmed date yet. Investors may want to keep their position size small to limit risk since AVGO could see increased volatility surrounding their earnings report.
BUY the 2015 Jan $50 call (AVGO1517a50) current ask $3.70
11/10/13 promoted from watch list to new play.
11/03/13 adjust trigger to $43.00
10/27/13 removed the 2014 call
10/20/13 adjust the buy-the-dip trigger to $43.50
adjust the stop loss to $39.40 & adjust the option strikes
adjust the 2014 exit target to $49.50
adjust the 2015 exit target to $54.00
10/13/13 adjust the buy-the-dip trigger from $40.00 to $40.50
Chart of AVGO:
Originally listed on the Watch List: 09/22/13