Dish Network Corp’s (DISH) love affair with the bulls just reached its six-year anniversary. Since bottoming at a lowly $8.34 in the heart of the 2008 meltdown, the popular direct-broadcast satellite service provider has successfully clawed its way back to its 2000 peak of $73, and then some.
Its recovery has been nothing short of epic and, on a side note, makes a sympathetic chap like myself want to shed a tear or two for the poor souls who parted with their DISH shares amid the fear fest of 2008.
With the bulls soundly in control all these years, every dip has been a gift, every breakout a profit giver.
Dish stock’s latest breakout was of the violent variety. Buyers, it seems, were not messing around. Upon clearing resistance in the $67 zone, shares of Dish Network rocketed a quick 18% before finally encountering a bout of profit-taking.
Which brings us to today.
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DISH has now retraced a little less than two-thirds of its powerhouse breakout placing it in a spot ripe for dip buyers. Would-be buyers who were reticent to chase the stock last week should be eying this pullback with increasing interest.
While it may yet drop a bit further — perhaps even to its breakout area near $67 — the time is soon at hand where those who want to jump aboard the DISH train ought to start a-hoppin’.
Options Trade on Dish Network
With a price tag now north of $70 the frugal among us may be wishing for a lower-cost alternative to straight-up buying shares of Dish. Well, take heart, my thrifty friends … the options market offers cheap plays aplenty.
Those wanting to live the simple trading life may elect to buy a call option. The risk is limited to the initial cost of the option, while the reward is unlimited. If you think Dish Network can quickly return to last week’s all-time high, buying January call options should provide ample time for the move to transpire.
Buy the Jan $72.50 call option for $4.20. The risk is limited to the initial $420 paid, the reward is unlimited.
As of this writing, Tyler Craig did not hold a position in any of the aforementioned securities.
