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I still have a heavy cash position, but inside 12631 I have been short Priceline.com. The stock has had a tremendous run this year, but saw some heavy selling volume in recent weeks to accompany churning price action. This tends to indicate that institutional players are aggressively exiting the position, even if it is only profit-taking. Either way, I like the risk/reward profile here for a short swing play, despite whatever shenanigans might come into play on an options expiration Friday into the bell.
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How would you play this with options? Buy some OTM puts spreads?
Hi Gavin,
I’d look at some June puts.
http://finviz.com/quote.ashx?t=fxe
FXE euro break of this diamond pattern still foretells a 4 to 500 pip euro squeeze. With today’s IMF welfare fest turning out half decent, that is not out of the question .
Arguably, the most diversified way to play that is buy the VGK . Its like the SPY of europe. Has stocks from almost every euro country
Kind of tragic there is no levered European stock market etf. Even the VGK volume is kind of on the shallow end, but, tradeable.
As insane as it sounds, I think STD bank is about to start a massive squeeze of up to 30% . Even against a flat SPY.
In terms of priceline, i think that it all depends on UGA
If gas breaks new yearly highs this summer, all travel stocks are in serious jeopardy