480

You may have noticed that I bring up the $480 price level as being key in PCLN (Priceline Com Inc) and once again price has attracted itself there. Here is a current Daily chart:

With the start of the new year, there will be many stocks that will have elevated volatility as people begin building new positions for 2012. I suspect that PCLN will be one that will attract a lot of attention (as in prior years).

As you can see in the chart above, there is a nice channel with $440 being the lower rail and $550 being the upper rail – I know, that is some range for such a small time view back to August 2011. If you have a Bearish bias, you can consider owning a February Put Spread (I think January expiration is just too close to do anything meaningful).

If you feel Bullish, and feel that price can get up through the 50 day & 200 day moving averages above, a February/April call calendar at the 480/500 strike may be of interest.

4 thoughts on “480

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