NEW DIRECTIONAL PUT PLAYS
Garmin Ltd. - GRMN - close: 39.60 change: -0.37
Stop Loss: 40.60
Current Option Gain/Loss: Unopened
Time Frame: exit prior to the Oct. 31st earnings report
New Positions: Yes, see below
Why We Like It:
GRMN is known for its GPS technology. The stock isn't looking very healthy. There was a false breakout above its 200-dma a couple of weeks ago. Now GRMN is breaking down below support near $40 and its 300-dma.
I am suggesting small bearish positions at the open tomorrow. We want to limit our position size since the most recent data listed short interest at 16% of the 123 million share float.
We'll start with a stop loss at $40.60. Our target is $36.00 but we will plan to exit prior to the October 31st earnings report.
- Suggested *Small* Positions -
buy the NOV $40 PUT (GRMN1217w40) current ask $1.84
Entry on October xx at $ xx.xx
Average Daily Volume = 787 thousand
Listed on October 17, 2012