NEW DIRECTIONAL PUT PLAYS
Amedisys Inc. - AMED - close: 55.22 change: -0.31 stop: 59.05
Amedisys is a leading provider of home health care and hospice services, with agencies located across the United States and Puerto Rico. The company was incorporated 1982. In 1994, the company became public and currently trades on The Nasdaq Market under the symbol â€œAMEDâ€.
(source: company press release or website)
Why We Like It:
Shares of AMED broke their up trend on March 25th when the stock was downgraded. AMED fell below technical support at the 50-dma and its trend of higher lows. The oversold bounce on Tuesday this week failed near $59.00. Healthcare stocks have not been that strong following the passage of the reform bill and with the market poised for a correction AMED could see a pull back toward $50 or the 2009 summer highs. I am suggesting we launch bearish put positions now. We'll put our stop above Tuesday's high. Our target to exit is $50.25. Our time frame is about two weeks.
Suggested Position: BUY PUT APRIL $50.00 (AMED 10P50.00) current ask $0.90
Entry on April 1st at $ 55.22(?)
Earnings Date 04/28/10
Average Daily Volume = 749 thousand
Listed on March 31st, 2010