Priceline Earnings Ideas: Previously Premium Earnings 5-9-13 part 2

• Posted by Greg Harmon
• on May 9th, 2013

one more name today that reports after the close tonight, Priceline, $PCLN.

Priceline, $PCLN

Priceline, $PCLN, has been consolidating between 675 and 740 since late January. Over this time the Simple moving Averages (SMA) have been drifting higher with the Relative Strength Index (RSI) rising and holding in bullish territory, the Moving Average Convergence Divergence (MACD) indicator leveling, and the accumulation/distribution indicator flat at the lows. No real bias in the very short term but longer term higher. Support lower comes at 675 and 630 followed by 600 and 550. Resistance higher is found at 740-745 and 775, very near the 78.6% Fibonacci at 779, and followed by the 88.6% Fibonacci at 878 before a full retrace to 990. The reaction to the last 6 earnings reports has been a move of about 8.18% on average or $59.30 making for an expected range of 678 to 800. The at-the money May weekly Straddles suggest a smaller $41.50 move by Expiry with Implied Volatility at 120% well above the May at 50% and the June at 29%.

Trade Idea 1: Buy the May 750/775 Call Spread for $10.00.

Trade Idea 2: Buy the June 755/775 Call Spread for $8.30.

Trade Idea 3: Sell the May 775/790 Call Spread for a $4.00 credit.

Trade Idea 4: Sell the May/June 660 Put Calendars for a $4.00 credit.

I like #2 and paired with #3 and #4 can be in for no cash

I will unlock this and share with the twitterverse at 3:15

This was originally given to subscribers at 2:00pm. I posted earlier that I entered trades #2 and #3.

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