NEW BEARISH Plays
Overseas Shipholding Group - OSG - close: 32.01 change: -0.96
Stop Loss: 34.25
Target(s): 27.75, 25.25
Current Gain/Loss: + 0.0%
Time Frame: 8 to 9 weeks
New Positions: Yes, see below
Why We Like It:
The fact that shipping rates have been on the rebound in the last four weeks has had little affect on shares of OSG. The stock failed at its 200-dma in late February. The oversold bounce just failed a couple of days ago under $34.00. Now OSG is on the verge of a serious breakdown.
I am suggesting small bearish positions now at current levels with a stop loss at $34.25. The 50-dma is at $34.12. We can add to positions once we see OSG close under the August 2010 lows near $31.40. The P&F chart is forecasting a $25 target. I am suggesting we set our exit targets at $27.75 and $25.25.
Remember, small positions at first and then add to positions as the play progresses.
- Open Small Bearish Positions Now -
Suggested Position: Short OSG stock @ current levels
- or -
Buy the April $30 PUTS (OSG1116P30) current ask $0.85
Entry on March 11 at $xx.xx
Earnings Date 05/04/11 (unconfirmed)
Average Daily Volume: 705 thousand
Listed on March 10th, 2010