Today's chart is of
), which manufactures and sells commercial and military trucks,
buses, diesel engines, and recreational vehicles, as well as
provides service parts for trucks and trailers worldwide.
What I'm Looking At:
- Strong outperformer, up more than 58% year-to-date.
- Month-long consolidation phase (cup-with-handle formation?)
S&P 500 Index
- Earnings release on Wednesday, September 4, before the market
opens, could be the catalyst to break shares out of consolidation
- Average historical earnings move is 9.9% according to
- The 10-day buy-to-open put/call ratio is reading 1.86,
indicating that option players are purchasing nearly twice as
many puts than calls.
- Ten-day put/call ratio ranks in the 80th percentile of all
readings taken during the past year, an indication of
- Short interest is high, nearly 20% of the float.
- Short positions may be underwater as a big chunk was placed
at lower prices.
- Short interest ratio is 13, indicating it could take 13 days
to cover based on NAV's average daily volume.
- Six out of 11 analysts rate the shares a "hold" or worse,
possible future upgrades after a possible positive earnings
On aggressive trade would be buying a call ahead of next week's
earnings in anticipation of breakout after release. Target =
round-number $40 level.
This article by Tony Venosa, CMT, was originally published on
Schaeffer's Investment Research
Below, find some more great content from Schaeffer's Investment
Daily Game Plan - War Concerns Linger
Trading 101: Another Spread Trade Illustrated
Option Briefs: Bulls Tune In to Time Warner Cable