Company Description: C. R. Bard, Inc., headquartered in Murray Hill, N.J., is a leading multinational developer, manufacturer and marketer of innovative, life-enhancing medical technologies in the fields of vascular, urology, oncology and surgical specialty products. (source: company press release or website)
Why We Like It: The 2 1/2 year rally in shares of BCR appeared to have peaked near $75.00 in May. Since then the stock has been sliding under a trend of lower highs although BCR did spend most of the last six weeks in a trading range between $65.00 and $68.00. BCR recent action has been very bearish. The stock failed at its simple 50-dma, broke down under both its simple and exponential 200-dma's, and broke through round-number price support at the $65.00 level on above average volume. This has naturally turned its technical indicators bearish but we also see that its P&F chart has turned bearish and points to a $59 target. We are going to suggest bearish positions here under $65.00 and target a drop into the $60.50-60.00 range.
Suggested Options: We are suggesting the September puts.
BUY PUT SEP 65.00 BCR-VM OI= 90 current ask $3.90 BUY PUT SEP 60.00 BCR-VL OI=220 current ask $2.50