NEW DIRECTIONAL CALL PLAYS
GNC Holdings - GNC - close: 59.76 change: +0.71
Stop Loss: 57.95
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
GNC is in the services sector. They operate over 8,000 retail locations for their health and wellness products. The company reported earnings on October 24th. Bottom line results were in-line with estimates. The revenue number was a miss. Yet the stock rallied after management offered bullish guidance.
There has been no post-earnings report decline. Instead shares have managed to maintain their gains and consolidate sideways. That might suggest a lack of sellers. Today GNC's rival Vitamin Shoppe (VSI) reported better than expected numbers and the stock soared. VSI's reaction may help explain GNC's display of relative strength today (+1.2%). Currently GNC is hovering just below key resistance near the $60.00 level.
I am suggesting a trigger to buy calls at $60.50. If triggered our target is $64.50.
Trigger @ 60.50
- Suggested Positions -
Buy the DEC $60 call (GNC1322L60) current ask $1.60
Entry on November -- at $---.--
Average Daily Volume = 1.5 million
Listed on November 05, 2013