As long as SINA Corp. (SINA, $86.50, off $2.10) holds above the $79.13 swing low made on October 9th, I want to take my buy triggers against one of two support clusters that I’m seeing above this low. The first area comes in at $83.08 – $84.63. The second zone comes in at $81.05 – $82.34.
If this setup starts to play out, some of the upside targets are $93.91, $95.10 and $97.93. I would consider myself wrong the trade if the 10/9 swing low is taken out.
How to play this media provider to the Chinese community with options? SINA has weekly options through November expiration. I think the November regular expiration (11/15) November 82.50 – 95 strike bullish vertical spread could be trading near $4.10 early next week if the first target (above) is reached. If correct we’re risking ~$4 to make ~$11 if SINA hits our second upside target.
For more information on trigger entries, please refer to my guidelines.