NEW DIRECTIONAL CALL PLAYS
Conns Inc. - CONN - close: 43.82 change: +1.40
Stop Loss: 43.45
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
CONN is a retailer that continues to show relative strength. Traders bought the dip near $40.00 a few days ago and now the stock is poised to breakout past resistance and hit new all-time highs. The old all-time high, set in 2006, is $44.99. If CONN can break out past resistance at the $45.00 level shares could see a huge short squeeze.
The most recent data listed short interest at 40% of the small 22.4 million share float. Right now shorts have got to be panicked. This month alone CONN has garnered a lot of bullish analyst comments and several new, upgraded price targets.
I am suggesting a trigger to buy calls at $45.10. If triggered our target is $49.50. More aggressive traders may want to buy calls now and adjust your stop loss.
Trigger @ 45.10
- Suggested Positions -
buy the May $45 call (CONN1318E45) current ask $1.30
Entry on April -- at $---.--
Average Daily Volume = 758 thousand
Listed on April 24 2013