Tuesday, February 2, 2010

Short PCLN

Yesterday I bought 1 Feb '10 put @ 195 strike for $8.30. Priceline.com is another tech name. As the tech breaks down, this name is in my opinion one of the better short candidates. It reversed course to the downside after hitting a high of $231.49 on 12/28/09. The downtrend was confirmed when it traded below its 50 day moving average (Yellow line). Days later another confirmation came when the 15 day moving average traded below the 50 day.

I got in yesterday when PCLN was trading at about $199, it did rally but this is a high priced stock and very volatile so you can not panic with moves against you. As long as this stock stays below its 15 day moving average I am in. Currently that target is at $207 at which point I would have a loss of about $285. I am trying to slowly expose my portfolio to the downside.

You will see from below that I am down about $200 in the position as of now.

1 comment:

  1. Got stopped out today as PCLN breaks out of its downtrend to the upside. Booked about a $330 loss. Ripper!