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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Comment by 1nt2Tradeon Mar 06, 2016 5:59pm
119 Views
Post# 24627977

RE:Technically Speaking...

RE:Technically Speaking...I think you are right.  The TA chart is setting up for a pan handle breakout probably to the upside.  Since the general stock market crash in Jan CXR has not broken above $42 and has mostly traded within a range.  It looks to me like the sp will drift down again this week to the high $30's range then back up to the low $40's until pre earnings release.  I might sell some puts and enter via assignment if the SP drifts in the money but I expect you could collect the premium on April 15 puts post the anticipated earnings breakout and not get assigned.  

Really the best strategy would be to sell the puts and use the money to buy the calls; the cost almost offsets one another.   This looks like a high probabllity move to be confirmed shortly.  Here's the TA chart back 1.5 months:

https://i.imgur.com/WlhWbJx.png

It might be dangerous to stay in CXR though until we find out who will be president.  
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