membership



Option Tip
Monday, October 10th, 2011
INFY



Share

Introduction

INFY in the blues

The option tip is based on Infosys Tech (NASDAQ: INFY), the IT and consulting services firm based in India. INFY reports before the bell on Wednesday, with analysts expecting a profit of 69 cents a share vs. 65 cents a year ago.

“Infosys’ Earnings Report likely to Slide.....another rough quarter!”

Business Description

Infosys Ltd. defines, designs and delivers IT enabled business solutions for its clients. defines, designs and delivers technology-enabled business solutions for Global 2000 companies.

Information for the Strategy

The stock has done horribly after recent reports. The shares have dropped after each of the past five reports, plunging an average of 8% in just one day. Taking out the huge 19% loss two quarters ago, the average loss is 5.2%. That’s plenty to make any option trader smile.

The chart shows the stock trading sideways for the past six weeks. But now it’s running into its declining 50-day moving average, a trendline the stock last closed above on Aug. 1.

INFY-100711



The closest competitor for INFY that has posted some recent earnings data is Accenture (NYSE: ACN), which reported a solid quarter last week.


This market is looking for reasons to knock any stock lower. And it’s been finding plenty of them with INFY in recent quarters. Look for the pattern to continue.

The Option Tip

Therefore:-

buy the Infosys Tech (INFY) Oct. 52.50 put for $3.50 or less.


Share

membership



Take control of your future prosperity the Easy way. Become a member of Stock Options Made Easy today!



Back to Stock Options Made Easy from Option Tip - INFY






Search Stock Options
Made Easy



Enjoy Relaxed or Fast-Paced Trading? Choose your Membership Style...

Whether you prefer to take a laid-back approach to your trading,

or to charge ahead in your options trading,

 Stock Options Made Easy Armchair Trader and Cut-to-the-Chase Trader Memberships put everything you need to succeed at your fingertips for just  $39 or $79 per month.





Search Stock Options
Made Easy




newsletter-free


Subscribe to our FREE
newsletter for all the latest options news!


Enter Your Email Address

Enter Your First Name











Follow S_O_M_E on Twitter











Subscribe to our FREE
newsletter for all the latest options news!


Enter Your Email Address

Enter Your First Name











Follow S_O_M_E on Twitter