NEW DIRECTIONAL CALL PLAYS
SBA Communications - SBAC - close: 92.29 change: +1.72
Stop Loss: 89.90
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on February 25th
New Positions: Yes, see below
Why We Like It:
SBAC is in the services sector. The company operates wireless communication towers across Northern and Central America. SBAC's stock peaked near $92.00 back in November last year. The stock corrected down toward its 50-dma and the $85.00 level. After basing sideways for a while the prior long-term up trend resumed. Investors have been buying the dips and currently SBAC is outperforming the broader market with a +2% gain in 2014.
The current bounce has SBAC pushing against resistance at its all-time highs in the $92.50 area. If SBAC can breakout there is a good chance it will run toward the $100 level. I am suggesting a trigger to buy calls at $93.05. If triggered our target is $99.50.
FYI: The Point & Figure chart for SBAC is bullish with a $107 target. A move above $93.00 would produce a new buy signal.
Trigger @ 93.05
- Suggested Positions -
Buy the MAR $95 call (SBAC1422C95) current ask $1.70
Entry on January -- at $---.--
Average Daily Volume = 1.3 million
Listed on January 30, 2014