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| Stolen Chart Idea of the Day: AWAY |
WARNING: This is a DrJ recommendation and the stock is NOT cheap.
The stock has a ttm P/E of 195 and a forward P/E of 35 according to Finviz. They should report February 18th and there is a huge short interest. Fully 14% of the float is shown as short and that requires almost 19 days to cover. The analysts have a 28 price target on this one so it is a powder keg looking for a spark.
The Trade
An entry in the 23-23.50 area would be good and a stop just below the 20 day simple moving average will contain the downside risk. With the focus that FM may have put on this setup it could move very quickly so if you are not willing to "set and forget" or stare at the screen and watch like a hawk this is probably not for you. Volume on Wednesday was above average and has been increasing each day since last week.
Check the March 25 strike and you'll see tremendous action. Open interest was 10 (yes t-e-n) and volume hit 6352.