Tuesday, March 6, 2012

$PCLN setup - 6mar

for Priceline here is what im looking for. its barely making a dent on the chart even being down 12bucks..if it drops below this post earnings low near 625 then the presumption is it will continue to drop to fill the gap up from earnings. i am looking for that gap fill, especially with priceline making most of their money from europe so the cnbc heads will tie in whatever is going on in greece and extrapolate it to priceline. regardless, it is a best of breed stock that is in the top of my watchlist and a constant entry on the IBD50. if stock pulls back to fill the gap, say 600ish, i will then price out some spreads at least at/below the weak support at 560 but ideally at/below the approaching 50day near 540..that would be best case. just note that $5wide strikes as of today are not available until 565 for Apr. , doesnt really matter for the levels im looking at but may affect you if you for some reason want to mess around with calls at current level or iron condor the position. setting initial alert at 605 to get it on my radar.