NEW DIRECTIONAL CALL PLAYS
NYSE Euronext - NYX - close 27.63 change -0.25 stop 26.69
NYSE Euronext is a global operator of financial markets and provider of trading strategies. The Company offers an array of products and services in cash equities, futures, options, swaps, exchange-traded products, bonds, market data and commercial technology solutions. It is an equities exchange group. As of December 31, 2009, 64 of the 2009 Fortune Global 100 companies were listed on NYSE Euronext. During the year ended December 31, 2009, the Company operated under two segments: United States Operations and European Operations. United States Operations and European Operations consist of providing various services in its United States and European markets. It operates the New York Stock Exchange (NYSE), Euronext, NYSE Liffe, NYSE Arca, NYSE Arca Europe, NYSE Alternext, NYSE Amex, NYSE Liffe US, LLC (NYSE Liffe US), NYSE Technologies, Inc (NYSE Technologies) and SmartPool.
Target(s): 29.35, 29.80, 30.20
Key Support/Resistance Areas: 30.50, 29.40, 27.50, 26.80
Time Frame: 1 week
Why We Like It:
NYX Broke out of a steep downtrend line, rallied to test its 50-day SMA and has now to a key support level near $27.50. The stock has upward trend line from the its 2/5 lows to its 6/8 lows. This has outperformed the overall market by a mile. NYX should also benefit from the FinReg bill and I suggest we play this stock for a bounce. Our stop is below the trend line and our targets are fairy tight and achievable. $29.35 is +6% from current levels.
Suggested Position: Buy August $27.00 CALLS, current ask $2.05
Entry on July xx
Earnings Date 8/3/10 (unconfirmed)
Average Daily Volume: 3 million
Listed on 6/30/10
NEW DIRECTIONAL PUT PLAYS
Children's Place - PLCE - close 44.02 change +0.34 stop 48.10
The Children's Place Retail Stores, Inc. is a pure-play children's specialty apparel retailer in North America. It provides apparel and related accessories for children from newborn to ten years old. It designs, contracts to manufacture and sells merchandise under the The Children's Place brand name. The Children's Place has differentiated departments and is dedicated to serving the needs of Girls and Boys (sizes 4-14), Baby Girls and Boys and newborn (sizes 0-12 months.). Its merchandise is also available at its online store located at www.childrensplace.com. As of January 30, 2010, the Company owned and operated 947 stores throughout North America, as well as its online store. During the fiscal year ended January 30, 2010 (fiscal 2009), it opened 38 stores and closed eight stores. It has 589 stores located in regional malls, 182 in strip centers, 129 in outlet centers and 47 street stores.
Target(s): 43.40, 41.70, 40.70, 40.05
Key Support/Resistance Areas: 46.40, 47.00, 46.00, 44.50, 43.40, 41.50
Time Frame: 1 to 2 weeks
Why We Like It:
PLCE has two consecutive closes below an upward trend line that began in December 2009. The stock has broken below its 20-day and 50-day SMA's and they are declining. I am anticipating a bounce up towards its 50-day SMA and a key resistance area near $46.00. I suggest readers initiate short positions at $45.75 which is an ideal entry. However, if PLCE breaks below today's low and trades to $43.19 use that as a trigger also, whichever occurs first. Our targets are down near the stock's recent lows. Our stop is $48.10 which is above the 20-day SMA and lots of congestion that I think PLCE will have a hard time navigating through on any bounces. It will be adjusted once we are in the position.
Suggested Position: Buy August $45.00 PUTS if PLCE trades to $45.75 or $43.19, whichever occurs first, current ask $3.70, estimated ask at $45.75 entry is 2.80
Entry on June xx
Earnings 8/19/2010 (unconfirmed)
Average Daily Volume: 700,000
Listed on June 30, 2010