NEW DIRECTIONAL PUT PLAYS
Domtar Corp. - UFS - close: 67.48 change: -0.48
Stop Loss: 70.05
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below
Why We Like It:
UFS is a Canadian paper and paper products manufacturer. The company recently reported earnings (on April 25th) and investors were unhappy with the news. Wall Street was expecting $1.43 a share. UFS missed the estimate by 14 cents. They also missed the revenue estimate. Shares sold off hard with a breakdown to new 52-week lows. Management has tried to soften the blow by raising their quarterly dividend by 22% from 45 cents to 55 cents but it's not helping. UFS underperformed the market again today.
Shares found support this week near $67.00. I am suggesting a trigger to buy puts at $66.75. If triggered our target is $62.50.
Trigger @ 66.75
- Suggested Positions -
buy the Jun $65 PUT (UFS1322R65) current ask $2.25
Entry on May -- at $---.--
Average Daily Volume = 448 thousand
Listed on May 02 2013