In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates:
WPI - the failed rally near $60.00 looks like a bearish entry point. I would not hold over earnings on Feb. 14th.
GDI - the reversal in GDI also looks like a bearish entry point. I would not hold over earnings on Feb. 9th.
BWLD - shares look like they're building up steam for a rally higher. I would not hold over earnings on Feb. 7th.
CNC - showed relative strength and closed at a new record high today. I would not hold over earnings on Feb. 7th.
NEW DIRECTIONAL CALL PLAYS
Wellcare Health Plans - WCG - close: 59.76 change: +1.36
Stop Loss: 57.75
Current Option Gain/Loss: Unopened
Time Frame: exit prior to earnings on Feb. 15th
New Positions: Yes, see below
Why We Like It:
Shares of WCG are trading near multi-year highs. The stock has rallied to resistance near $60.00. We want to buy calls on a breakout. I am suggesting a trigger at $60.25 with a stop loss at $57.75. Our target is $64.50. We do not want to hold over the Feb. 15th earnings report.
FYI: The Point & Figure chart for WCG is bullish with a long-term $74 target.
Trigger to buy calls @ 60.25
- Suggested Positions -
buy the Feb $60 call (WCG1218B60) current ask $2.95
Entry on January xx at $ xx.xx
Earnings Date 02/15/12 (confirmed)
Average Daily Volume = 485 thousand
Listed on January 31, 2012