NEW DIRECTIONAL PUT PLAYS
Apollo Group Inc. - APOL - close: 41.11 change: -0.90
Stop Loss: 44.25
Target(s): 38.15, 35.50
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below
Why We Like It:
The education space has been a tough one and shares of APOL continue to fail at its trend of lower highs. The stock just peaked again on Monday and this looks like a new entry point to buy puts. I am suggesting we buy puts now with a stop loss at $44.25. More conservative traders may want to use a stop closer to $43.50 instead. Plus if you're feeling cautious then wait for APOL to close under potential support at its 100-dma. Our profit targets are $38.15 and $35.50.
The Point & Figure chart for APOL is bullish with a $31 target.
- Suggested Positions -
Buy the May $40.00 puts (APOL1121Q40) current ask $1.28
Entry on April 13th at $ xx.xx
Earnings Date 06/30/11 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on April 12th, 2011