NEW DIRECTIONAL PUT PLAYS
Expedia Inc. - EXPE - close: 26.93 change: -0.26
Stop Loss: 27.75
Target(s): 25.10, 24.25
Current Option Gain/Loss: + 0.0%
Time Frame: 2 to 3 weeks
New Positions: Yes, see below
Why We Like It:
We have not had any bearish plays in a while because the market has been so bullish. Yet today's action looks like a potential short-term top. We will plan on using a pull back to launch new bullish positions. However, in the meantime we might be able to capture a move to the downside. EXPE looks like a bearish trade with the short-term double top (failed rally) near $27.60 and its 50-dma.
I am suggesting bearish put positions now. We'll target a short-term move toward $25.00 or lower.
Open positions at current levels
Suggested Position: Buy the 2011 January $25 Put (EXPE1122M25) current ask $0.65
Entry on December 8th at $ xx.xx
Earnings Date 02/10/11 (unconfirmed)
Average Daily Volume = 2.5 million
Listed on December 7th, 2010