In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates. Many of these need to see a break past key support or resistance:
WLK, TMK, CB, DIN, QCOM, CP, MON, GTLS, SINA, SIVB, FISV, TGT,
ORLY, BPL, CRR,
NEW DIRECTIONAL CALL PLAYS
AthenaHealth, Inc. - ATHN - close: 92.98 chagne: +2.45
Stop Loss: 89.45
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
ATHN is a services company in the healthcare industry. The stock has a long-term bullish trend of higher lows and higher highs. Shares have just spent the last couple of weeks consolidating between technical support at the 50-dma and resistance at $90.00. ATHN was in the process of breaking out past the $90 level prior to today. The stock shot higher on the market's widespread gains.
Aggressive traders might want to consider chasing it here because ATHN could see more short covering. The most recent data listed short interest at 32% of the relatively small 35 million share float. However, we do not want to chase it. We do not how the market is going to react to the jobs report due out tomorrow morning.
I am suggesting we wait and buy calls on a dip at $91.50. We'll use a stop loss at $89.45. Our target is $97.00. The option spreads are a little bit wider than I'd like so let's keep our position size small to limit our risk.
Buy-the-Dip Trigger @ $91.50 (stop 89.45)
- Suggested Positions -
buy the Oct $95 call (ATHN1220j95) current bid/ask $3.50/4.10
Entry on September xx at $ xx.xx
Average Daily Volume = 345 thousand
Listed on September 06, 2012