NEW DIRECTIONAL CALL PLAYS
Allergan, Inc. - AGN - close: 96.50 change: +0.58
Stop Loss: 94.95
Current Option Gain/Loss: Unopened
Time Frame: Exit prior to January option expiration
New Positions: Yes, see below
Why We Like It:
AGN is in the healthcare sector. The company competes in several areas including pharmaceuticals, biological, medical devices, and over-the-counter products. The stock produced a significant mid-November rally that broke through multiple layers of resistance. Since then shares have seen an orderly decline but they found support near $95.00, which used to be resistance. It's probably not a coincidence that AGN is also finding support at its 38.2% Fibonacci retracement of its November rally (this level happens to be near $95.00).
Today's high was $96.78. I am suggesting a trigger to buy calls at $97.00. More conservative investors may want to wait until AGN rallies above its 200-dma near $97.45 before initiating positions.
If we are triggered at $97.00 our multi-week target is $102.50. More aggressive traders could aim higher. The Point & Figure chart for AGN is bullish with a $110 target.
Trigger @ 97.00
- Suggested Positions -
Buy the 2014 Jan $100 call (AGN1418a100) current ask $1.60
Entry on December -- at $---.--
Average Daily Volume = 1.9 million
Listed on December 05, 2013