The Play Of The Day
06-24-99 08:59 EST
Good Morning Stock Fans!
Today's Play of The Day is: Dell Computer (NASDAQ:DELL), Dell Computer Option Calls July 40' (DLQGHA)
Stock Fans! It has been over 2 months since (NASDAQ:DELL) has been in its current price range of $36.6250 - $39.02 per share. I like it to make them now to over $40.00 per share. it hovered around its 200 day moving average for over 3 weeks. It looks to be in an uptrend here and continues to get upgrades. It would seem to me that support has been established at $36.6250 per share. I don't believe it goes anywhere near that anytime soon and today establishes that it can indeed break up and through $40.00 per share and hold it. After that I am looking for it to get to my target price of $45.00 perhaps by mid week or sooner next week.
Dell Computer (NASDAQ:DELL) Sets up here to be a perfect 5 day hold for you "Swing Traders" It looks to be trading flat as pre market has traded about 100,000 shares of (NASDAQ:DELL) so far today. I really like "Running The Option" as well on this one. (NASDAQ:DELL) options puts to calls ratio on the Dell July 45's Calls to the Dell July 35's Puts look very much like it is indeed in the Calls favor form a volume aspect.
So, Stock Fans! I will wait for (NASDAQ:DELL) to establish a rage today, as the S&P Futures are down slightly. Then I will look to get both (NASDAQ:DELL) the stock and Dell Option Calls for July 99.
Buy Area: just under $37.6250 to $38.00 (if it stays over $39.00 I will look to buy it there)
Sell Stop: $36.75
Target: : $ 45.00 to 50.00 (back where it should be!)
Stocks to Watch:
(NASDAQ:COOL) There earnings came in low. However this stock was really hit hard yesterday. If we see volume similar to yesterday. We might very well get some bottom fishers on this one.
(NASDAQ:CHFR) If you were in my LIVE TRADING ROOM yesterday on close then you saw me make a buy on this one. i thought it was very much oversold on a overreaction of a new offering by (NYSE:MER) It is trading way up now form $28.00 or so on close yesterday to now $38.00 on open. if you bought as I did you are very much awarded here. I will look to sell this stock on any weakness on the open. I then will be watching the range of what looks to be BIG VOLUME again today and get back in around $35.00- 36$.00 or so a share.
Have a great day!
See you in my LIVE TRADING ROOM
More to come...