NEW DIRECTIONAL CALL PLAYS
Western Digital Corp. - WDC - close: 78.86 change: +1.01
Stop Loss: 77.70
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to January option expiration
New Positions: Yes, see below
Why We Like It:
WDC is in the technology sector. The company makes data storage products.
We recently traded WDC with calls and caught part of the move toward $80. The stock has not seen much profit taking. Yesterday's session produced a bearish engulfing candlestick reversal pattern but there was no follow through today. Shares look like they are coiling for a bullish breakout past resistance near $80.00.
Tonight we're suggesting a trigger to buy calls at $80.25. If triggered our short-term target is $84.75. More aggressive traders may want to aim higher since the
Point & Figure chart for WDC is bullish with a $100 target.
NOTE: I am listing the 2014 January $80 calls but you might want to consider the April $85 calls instead to give you more time.
Trigger @ 80.25
- Suggested Positions -
Buy the 2014 Jan $80 call (WDC1418a80) current ask $2.43
Entry on December -- at $---.--
Average Daily Volume = 1.9 million
Listed on December 12, 2013