NEW BULLISH Plays
DreamWorks Animation - DWA - close: 20.25 change: -0.11
Stop Loss: 19.75
Current Gain/Loss: unopened
Entry on October xx at $ xx.xx
Listed on October 17, 2012
Time Frame: exit prior to the Oct. 30th earnings report
Average Daily Volume = 902 thousand
New Positions: Yes, see below
Why We Like It:
DWA looks poised to breakout past major resistance and the stock could see a short squeeze. The most recent data listed short interest at 43% of the 63 million share float.
Shares have been trading under resistance in the $20.00-20.50 area for months. DWA actually looks like it has built a significant bottom in the stock over the last few quarters. A breakout here could definitely spark some short covering.
I am suggesting a trigger to open bullish positions at $20.60 with a stop loss at $19.75. Our initial target is $22.00. More aggressive traders could aim a lot higher but I would not want to hold over the October 30th earnings report.
Trigger @ 20.60
Suggested Position: buy DWA stock @ (trigger)
- (or for more adventurous traders, try this option) -
buy the NOV $20 call (DWA1217k20) current ask $1.25