Quality company (5yr revenue growth +55%, long-term EPS +35%)
Trading at a premium valuation (63x PE, 8.5x P/BV)
Positively biased consensus with +19% upside target
Happy to own the stock for the long term, but at what price?
Superb up-channel post July 2013 breakout
Up-trend accentuation post Aug'15 flash crash
Technical picture positive on most time frames (M, W, D)
Has been registering higher highs and lows
Stock looking overbought on the longer time frames
WATCH THE FOLLOWING LEVELS PRE/POST
Watch long entry points at 128/123.50/117
OR: NEAR 0-COST OPTIONS STRATEGY
BUY 1xNov4'16 $135 call = $-2.07/share
SELL 2xNov4'16 $122 put = $0.99/share
TOTAL Pay $0.09/share to benefit from the upside
WORST case scenario: Go long -7% below current price
At the current level, we might not be put on the options (too close to the money), in which case, we would be losing a meager $0.09/share.
If exercised nonetheless, I would keep the shares, targeting both a short-term rebound and a longer term move towards the upper part of the channel.