NEW DIRECTIONAL PUT PLAYS
Allergan Inc. - AGN - close: 122.34 change: -2.23
Stop Loss: 125.20
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to April expiration
New Positions: Yes, see below
Why We Like It:
AGN is in the healthcare sector. According to their website, Allergan, Inc. is a multi-specialty health care company focused on discovering, developing and commercializing innovative pharmaceuticals, biologics, medical devices and over-the-counter consumer products.
Disappointing Q1 earnings guidance in early February failed to stop the rally in AGN. Yet the upward momentum began to slow in March until it actually reversed a few days ago. AGN appears to be breaking down and today's drop closed below its simple 50-dma. If this sell-off continues AGN could see a fall toward support near $115 or worse.
Tonight we are suggesting a trigger to buy puts at $121.90. If triggered our short-term target is $116.00.
Trigger @ 121.90
- Suggested Positions -
Buy the Apr $120 PUT (AGN1419P120) current ask $3.10
Entry on March -- at $---.--
Average Daily Volume = 2.5 million
Listed on March 26, 2014