Lincare Holdings Inc. (LNCR)
LNCR (Lincare Holdings--$26.67; 0.00; optionable)
Website: http://www.lincare.com
After Hours: $27.24
EARNINGS: 07/19/2010
STATUS: Bear flag. A rather ugly gap lower the first week of July as LNCR suffered a breakaway gap, i.e. a gap through key support levels and on some fairly massive volume. It sold down to the 200 day SMA where it bounced back and forth for the past week, rising slightly as it tried to recover. Don't think it will: breakaway gaps tend to continue on in the direction of the gap after the initial, obligatory attempt to recover. Friday LNCR was starting back down on some rising, average trade. Looks ready to tumble. As it continued downside we are ready to move in for a ride down to the initial target, an upside gap in early February that was never filled. That move lands us a 45%ish gain on the put options.
Volume: 2.342M Avg Volume: 2.325M
BUY POINT: $26.55 Volume=2.8M Target=$23.76 Stop=$27.77
POSITION: LNCR 10W27.50 - Nov. $27.50p (-50 delta)
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Website: http://www.lincare.com
After Hours: $27.24
EARNINGS: 07/19/2010
STATUS: Bear flag. A rather ugly gap lower the first week of July as LNCR suffered a breakaway gap, i.e. a gap through key support levels and on some fairly massive volume. It sold down to the 200 day SMA where it bounced back and forth for the past week, rising slightly as it tried to recover. Don't think it will: breakaway gaps tend to continue on in the direction of the gap after the initial, obligatory attempt to recover. Friday LNCR was starting back down on some rising, average trade. Looks ready to tumble. As it continued downside we are ready to move in for a ride down to the initial target, an upside gap in early February that was never filled. That move lands us a 45%ish gain on the put options.
Volume: 2.342M Avg Volume: 2.325M
BUY POINT: $26.55 Volume=2.8M Target=$23.76 Stop=$27.77
POSITION: LNCR 10W27.50 - Nov. $27.50p (-50 delta)
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