The Price is [NOT] Right?

I have been a big bull on Priceline Group ( $PCLN ) over the years -the stock formerly knows as I have made quite a bit of money playing both sides ( one example here : ), but the majority have been via call options... until now.

Priceline Group ( $PCLN ) reported their Quarter 3 results two weeks ago that bested estimates, but issued a weak outlook for Quarter 4 and FY15. The stock sold off but found support around $1305. Adding insult to injury was the filing out on November 13th showing David Tepper from Appaloosa Management  cutting another 130k shares from their Priceline Group ( $PCLN ) position, on top of a 25% reduction in Quarter 2.

Then we had the tragic events in Paris two Friday's ago, and the continued tensions in the Eurozone (ie. Brussels) that will likely cause folks to cut back on their travel plans. All you hear about now are school trips  and vacationers canceling plans despite the pleas to keep the status quo.

Last but not least, is the US dollar. Although Priceline Group ( $PCLN ) does have some hedges in place, the strengthening of the 'greenback' is likely another headwind for the company.

I mentioned  Priceline Group ( $PCLN ) on the Week Ahead Webinar this past weekend, and on the morning watchlist and called for a move under $1230 and possible $1200. I added some $1217.50 puts late this morning at .67 average and think the stock starts heading under $1250 and towards $1230 in the coming days.

I think this happens regardless of whether the S&P is up or down.  Priceline Group ( $PCLN ) is a great company and has continued to weather the storm.  Eventually this is a $1500 stock, but for now, think it's susceptible to downside.


Happy Trading!



JimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

More Posts by JB: View All | Private Twitter Feed: Access Now! (For Diamond Members)

Leave a Reply