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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4417
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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Hi, Today I purchased some Nov 1065 calls on PCLN. What

Resolved Question:

Hi,

Today I purchased some Nov 1065 calls on PCLN. What is the general consensus of the stock price, especially with earnings approaching?
Submitted: 2 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 2 years ago.

Rakhi Vasavada :

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

Rakhi Vasavada :

Kindly remain online for a while as I prepare your reply.

Customer:

Thanks

Rakhi Vasavada :

Are you referring to Priceline.com Inc ?

Customer:

yes, ticker symbol PCLN

Rakhi Vasavada :

Yes, Please remain online for a while.

Customer:

thanks

Rakhi Vasavada :

The earnings estimates show that the numbers from Priceline would be in line with the Market estimates with a little positive bias. The meaning is - either they would be in line with what the Markets expects OR may be little better.

Rakhi Vasavada :

The overall consensus is towards long positions, i.e. buying. The technical charts show that the short to medium term target on this stock can be put at 1100-1125.

Rakhi Vasavada :

Is there anything more I can assist you with ?

Customer:

Great, thanks

Rakhi Vasavada :

I am sure this would help. You may please leave a positive rating if this helps as this ist the only way we get compensated for assisting you. Alternatively please feel free to reply back if you need further assistance.

Warm Regards,

Rakhi Vasavada :

Are you there ? I request you to kindly put a positive rating if this helped. Feel free to reply back if you need more assistance.

Customer:

Yes, one more question.

Customer:

So the target price to sell the 1065 calls would be around 1100 - 1125?

Rakhi Vasavada :

No, you cannot sell calls if you have a bias on the upside.

Rakhi Vasavada :

You can buy and calls with the nearest strike price and wait for the stock price to go to 1100-1125 levels

Rakhi Vasavada :

With the rise in stock price, the call price too would rise.

Customer:

So what would be the target price?

Rakhi Vasavada :

The target price of the stock should be anywhere between 1100-1125 levels.

Customer:

I mean the option calls?

Rakhi Vasavada :

Ok.. let me give you the strike prices as well.

Rakhi Vasavada :

If you take the 1065 strike price call, the last price is $10.50, with a stoploss of 7, you can expect the price to reach 15-17

Customer:

That isn't correct because I paid $43.20

Customer:

That is the last price

Rakhi Vasavada :

When did you buy this call ?

Rakhi Vasavada :

I am talking about October Month.

Rakhi Vasavada :

You must have paid 43.20 for NOVEMBER expiry which closed at 45.43.

http://in.finance.yahoo.com/q?s=PCLN131122C01065000

Rakhi Vasavada :

If you are talking about this, you can expect the price targets of 58-60

Customer:

correct, I purchased the November call

Customer:

for 43.20

Rakhi Vasavada :

Yes, then you can fairly expect the price targets of this at 58-60

Customer:

great, thank you

Rakhi Vasavada :

You are most welcome.

Rakhi Vasavada :

I am sure this would help. You may please leave a positive rating if this helps as this ist the only way we get compensated for assisting you. Alternatively please feel free to reply back if you need further assistance.

Warm Regards,

Customer:

Will do, thank you

Rakhi Vasavada :

You are most welcome.

Rakhi Vasavada :

In future, if you need to reach out to me directly, just prefix "For Rakhi Vasavada..........." before your question and you will reach me.

Customer:

Can I ask one more question

Rakhi Vasavada :

Sure, please go ahead.

Customer:

Thank you, XXXXX XXXXX the general consensus on AMZN earnings tomorrow. Is this positive or negative?

Rakhi Vasavada :

Just a minute....

Customer:

earnings report after the bell tomorrow

Rakhi Vasavada :

Yes,

Rakhi Vasavada :

Amazon earnings are expected to be in line with the overall analysis, they are expected to remain flat with no major increase or decrease.

Rakhi Vasavada :

It will not surprise you in either way.

Customer:

Do you think calls or put options?

Rakhi Vasavada :

I am talking about calls. If you buy them, you cannot expect more than a moderate upside.

Rakhi Vasavada :

Am I clear ? or is there any confusion ?

Rakhi Vasavada :

Are you there ?

Customer:

So calls would be the play?

Rakhi Vasavada :

Yes, that is right. With no major downside expected, calls should be the play.

Customer:

Great, thank you again

Rakhi Vasavada :

You are most welcome..!

Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4417
Experience: Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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