NEW DIRECTIONAL PUT PLAYS
Owens Corning - OC - close 32.25 change -0.03 stop 34.72
Owens Corning is a producer of glass fiber reinforcements and other materials for composites and of residential and commercial building materials. The Company operates in two business segments: composites, which include the Company's reinforcements and downstream businesses, and building materials, which includes its insulation, roofing and other businesses. The Company's products range from glass fiber used to reinforce composite materials for transportation, electronics, marine, infrastructure, wind-energy and other markets to insulation, roofing and manufactured stone veneer for residential, commercial and industrial applications. During the year ended December 31, 2009, the Company's Composites and Building materials business segments accounted for approximately 33% and 67% of total net sales.
Target(s): 29.75, 28.80, 27.60
Key Support/Resistance Areas: 34.55, 32.90, 32.60, 31.00, 29.50, 28.50, 27.00
Time Frame: 1 to 2 weeks
Why We Like It:
OC has made a lower high and a lower low and I believe the stock will make a another lower low, or at least retest its recent lows which is almost -5% lower than current levels. The stock is testing its 20-day and 50-day SMA's from below which I also think will hold as resistance. If OC bounces there is also a downward trend line and congestion above to keep things in check. Our stop will $34.72 which is above the downward trend line and its highs from late May and Mid June.
Suggested Position: August $32.50 PUTS, current ask $2.50
Entry on June xx
Earnings 8/4/2010 (unconfirmed)
Average Daily Volume: 2.3 million
Listed on June 28, 2010