The Play Of The Day
06-17-99, 7:45 AM EST.
Good Morning Stock Fans!
Today's Play of The Day is: Compaq (NYSE:CPQ), Compaq ( NYSE:CPQ) July 20
I am sure what you have heard with (NYSE:CPQ) They have warned in a big way today already. I will look to buy shares of (NYSE:CPQ) of what I hope should be bottom today. I look at it this way (NYSE:CPQ) will have very large volume today. It also will have plenty of sellers of the open today, and in pre-market activity. The stock has to "bounce" somewhere and investors will say to themselves "I am willing to pay this much for (NYSE:CPQ)" The Question one must ask then is at what price today do investors make that call?
Compaq, INC (NYSE:CPQ) is going to open at a 3 year low today. You have to go that far back to find the stock this low. (NYSE:CPQ) had support at just over $21.00 dollars a share prior to today's warning on up coming earnings. It is currently trading $2.25 down in premarket. With that in mind $21.00 dollar support is now gone. I am looking for the new area where investors are willing to buy (NYSE:CPQ) today to be around $18.50-$19.00 per share.
So, Stock Fans! that is the call I am making today to try and pull (NYSE:CPQ) off the bottom today.
Another way I will look to play it is to buy (NYSE:CPQ) July 20 Option
Calls, witch closed at an even $3.00 yesterday to be priced around $1.43750 - $1.6875 per contract.
OK READY BREAK!
More to come...