Monday, September 24, 2007

TJX makes an interesting investing trade candidate - but used PTV Instead

TJX has crossed below the 22dma on Friday, and the technicals and fundamentals align to indicate a potential trade to the downside on Monday, providing the stock is still below the 22dma after the first hour of trading.

The TJX JAN 35 Put is asking 5.30, with a potential downside of 4.40 (-16%). The target sell stop should be for the stock to make a 10% move from 30.09 to 27.08 to increase the option price to 7.90 for a 49% gain.

++++ update ++++

Well, after the first hour today, TJX shot up above the 22dma again, so no trade there!. However I did decide to make an investing trade on PTV, and bought the PTV FEB 30 Put for 3.40 with a stop loss at 2.75 (-19%) with a sell stop at 5.0 (potential 47% gain)


+++ update - Got stopped out on PTV at 2.55 on 1st October. Oh Well!

2 comments:

Anonymous said...

Looks like you are into Investing. Check out UPS for Investing Up. Just found it.Havent done the numbers.

Mark Rabjohns said...

I checked out UPS but don't like it for investing because the fundamentals are only a 6 and the last move across the 22dma was only about 4%.