We've found a momentum trade that isn't outrageously overbought.
Look for a dip toward support as an entry point.
NEW BULLISH Plays
Sony Corp. - SNE - close: 34.45 change: -0.92
Stop Loss: 32.90
Target(s): 35.75, 39.00
Current Option Gain/Loss: unopened
Time Frame: 10 to 12 weeks
New Positions: Yes, see trigger
The Sony Group is primarily focused on the Electronics (such as AV/IT products & components), Game (such as PlayStation), Entertainment (such as motion pictures and music), and Financial Services (such as insurance and banking) sectors. Not only do we represent a wide range of businesses, but we remain globally unique. Our aim is to fully leverage this uniqueness in aggressively carrying out our convergence strategy so that we can continue to emotionally touch and excite our customers. (source: company press release or website)
Why We Like It:
Investor sentiment on SNE has been bullish and shares were hitting new seven-month highs just a few days ago. Broken resistance near $34.00 should offer some support and a chance for us to jump on SNE's up trend. I am suggesting a trigger to buy SNE stock (or call options) at $34.00. If triggered our first target is $35.75 with a stop loss t $32.90.
Trigger @ $34.00
Suggested Position: Buy SNE stock
- or -
Buy the 2011 APRIL $35 calls (SNE1116D35) current ask $2.45
Entry on November xx at $xx.xx
Earnings Date 02/03/11 (unconfirmed)
Average Daily Volume: 888 thousand
Listed on November 23rd, 2010