NEW DIRECTIONAL PUT PLAYS
Charter Communications - CHTR - close: 125.72 change: -1.55
Stop Loss: 127.05
Target(s): 1st target: 120.50, 2nd target: $116.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 5 weeks
New Positions: Yes, see below
Why We Like It:
CHTR is in the services sector. The company is a cable company providing cable TV and Internet services. The company had been contemplating a bid to buy Time Warner Cable (TWC) but Comcast ending up the winning suitor for TWC and shares of CHTR plunged on the news. Since that announcement between TWC and Comcast shares of CHTR have been volatile. Technically it looks like a bearish double top with CHTR's peaks in October and January. The recent bounce just failed near $130 and its 200-dma. CHTR could be in a new bearish trend of lower highs and lower lows.
Today's low was $125.05. I am suggesting a trigger to open bearish positions at $124.60. If triggered I am setting two different targets. Our conservative target is $120.50, the February low. Our more aggressive target is $116.00.
FYI: The Point & Figure chart for CHTR is bearish with a $110 target.
Trigger @ 124.60
- Suggested Positions -
Buy the APR $120 PUT (CHTR1419P120) current ask $1.90
Entry on March -- at $---.--
Average Daily Volume = 2.5 million
Listed on March 13, 2014