In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates:
MDVN - MDVN broke out to new highs yesterday after spending weeks consolidating under the $75.00 level. Traders were buying the dip intraday today.
SHW - Shares look poised to breakout from the $108-110 zone. Consider using a trigger to buy calls at $110.25.
NEW DIRECTIONAL CALL PLAYS
Regeneron Pharma. - REGN - close: 122.05 change: -2.44
Stop Loss: 119.75
Current Option Gain/Loss: Unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see below
Why We Like It:
REGN is a biotech company and its stock could see more short covering. Shares broke out past the $120 level yesterday to hit new record highs. The stock was not immune to the market's profit taking today but traders were buying the dip at $120.00 (old resistance as new support). The most recent data listed short interest at almost 9% of the 71.4 million-share float.
I am suggesting a trigger to buy calls on REGN at $122.50 with a stop loss at $119.75. Our short-term target is $127.50 but we will exit prior to April options expiration.
Trigger @ $122.50
- Suggested Positions -
buy the Apr $125 call (REGN1221D125) current ask $2.90
Entry on April xx at $ xx.xx
Earnings Date 05/01/12 (unconfirmed)
Average Daily Volume = 774 thousand
Listed on April 04, 2012