NEW DIRECTIONAL PUT PLAYS
Time Warner Cable - TWC - close: 110.21 change: -2.56
Stop Loss: 111.60
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
TWC is a major player in the cable TV business.
The stock peaked in early August following its earnings report. The stock has also been volatile on news of a fight with CBS.
TWC is currently dueling with CBS as the two media giants argue over retransmission fees. In the meantime TWC is sinking and shares accelerated lower today.
TWC stock is sitting on support near $110 and its 50-dma (currently 109.70). I am suggesting a trigger to buy puts at $109.50. We do want to keep our position size small. There is potential support at $108.00. The next level of support is $104.00. If we are triggered at $109.50, our target is $105.00.
Trigger @ 109.50
- Suggested Positions -
buy the Sep $105 PUT (TWC1321u105) current ask $2.10
Entry on August -- at $---.--
Average Daily Volume = 2.3 million
Listed on August 15, 2013