conrad: Check my PB Long analysis of PBCT (with the exception of the new high on Friday rule). I think it qualifies, except it probably does not make Power status and has a poor Merit Ranking (both gauges I'm willing to overlook with deliberance).
If it qualifies, look at April 30 and 35 Calls. At 4 3/8 for the 35's, you can buy them and play it just like the stock itself. Price stop (mental on options), RS stops. Play it just the same, but you don't have to outlay $3750 for 100 shares, less than $450 per contract plus a little heftier commission. If you bought the stock this morning on the open, you'd have paid $3850, and put a stop at 34 1/2. $400 dollar risk, about the same as the April 35. But since the option can expire worthless, the cost is the maximum risk. On the 34 1/2 stop on the stock, well, you know how that goes. If it's an RS stop that takes you out, chances are it will be the same, unless the time premium in the option gives you a small advantage compared to the price of the stock at the time you put in your sell order.
That should give you a glimmer of what I'm talking about.
Somebody sorta likes this MLI thing. Must be some sort of rumor or leak.
Jeff |
