NEW DIRECTIONAL PUT PLAYS
AthenaHealth, Inc. - ATHN - close: 83.18 change: -2.64
Stop Loss: 85.10
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
ATHN is in the healthcare billing industry. The company reported better than expected earnings in early May. Yet management issued an earnings warning for 2013 and the stock crashed. Shares have not participated in the market's rally since but instead have meandered sideways in the $83-88 zone. Shares are finally starting to breakdown through support with today's display of relative weakness.
Today's low was $82.16. I am suggesting a trigger to buy puts at $82.00. If triggered our target is $76.00. Please note that I am also suggesting traders keep their position size small to limit risk. The most recent data listed short interest at 26% of the small 36.1 million share float. That does raise the risk of a short squeeze.
FYI: The Point & Figure chart for ATHN is bearish with a $67 target.
Trigger @ 82.00 *Small Positions*
- Suggested Positions -
buy the Jun $80 PUT (ATHN1322R80) current ask $1.65
Entry on May -- at $---.--
Average Daily Volume = 495 thousand
Listed on May 28 2013