- New Trades -
Boston Scientific - BSX - close: 13.70
Our watch list candidate BSX has graduated to a new play. The stock has been consolidating sideways the last few weeks. We have been waiting for shares to close above $13.60 as our entry point. BSX met that requirement with Friday's close at $13.70. The plan is to buy calls on Monday morning. We are launching this play with a wide stop loss at $11.90. More conservative investors will want to consider a higher stop loss (maybe closer to $12.50).
BSX is in the healthcare sector and makes medical devices. Shares have fallen a long way from their 2004 highs near $46.00. The trend changed back in 2003. Momentum now favors the bulls. Our long-term target is the $17-18 area. More aggressive investors, with a longer time frame, may want to aim higher. The Point & Figure chart is very bullish and forecasting at $32 target.
NOTE: More conservative investors might want to wait for BSX to close above potential resistance at $14.00 before launching positions.
Breakout trigger: Wait for a close above $13.60
then buy calls the next morning, stop loss @ 11.90
BUY the 2015 Jan $15 call (BSX1517a15) current ask $1.06
- or -
BUY the 2016 Jan $15 call (BSX1615a15) current ask $2.08
03/10/14 trade opens.
03/09/14 Move BSX from watch list to new plays
03/07/14 BSX closes above $13.60
03/02/14 adjust entry trigger. Wait for close above $13.60 (instead of 13.50)
Chart of BSX:
Originally listed on the Watch List: 02/09/14