A few stocks that caught my eye tonight are AMZN, BCR, and PSA.
AMZN is consolidating sideways and looks ready to breakout from this consolidation pattern. Aggressive traders might want to consider buying calls on a rally past its early May high of $203.42.
BCR has been rising steadily for weeks. You can see where traders have been buying dips near the rising 10-dma. I'm concerned this stock is too overbought and due for a correction. Yet last week would have been the perfect excuse to sell BCR and shares only saw a minor decline. If you're nimble enough and use a tight stop you might be able to scalp a few points here if the trend continues.
PSA displayed some relative strength today. Shares have bounced back toward the top of its new trading range near $118.00. A breakout past $118 or past the high of $118.88 might be a new entry point for calls.
NEW DIRECTIONAL CALL PLAYS
Express Scripts - ESRX - close: 58.99 change: +1.06
Stop Loss: 56.75
Target(s): 64.00, 68.50
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below
Why We Like It:
ESRX was showing some relative strength on Monday. After a week of consolidating sideways (while the rest of the market was falling) the stock is breaking out to new all-time highs. I am suggesting we buy calls at current levels. Or if you prefer wait for a dip back toward to $58.50 level. It's possible the $60.00 level could be round-number resistance but if the market's major indices are bouncing higher I don't expect ESRX to stall at $60 for too long. Our targets are $64 and $68.50.
FYI: The Point & Figure chart for ESRX is bullish with a $72 target.
- Suggested Positions -
Buy the June $60.00 call (ESRX1118F60) current ask $1.40
- or -
Buy the August $60.00 call (ESRX1120H60) current ask $2.82
Entry on May 10th at $ xx.xx
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume = 4.6 million
Listed on May 9th, 2011