Trade of the Day: Mylan (MYL)

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We’ve opened a bearish trade on UK drug maker  Mylan (MYL). Investors are getting more sour on health care companies as accounting issues, declines in demand and currency volatility hit the bottom line. We like a bearish position on Mylan as the stock rolls over at its earning’s gap.

Missed expectations and a risky acquisition announced earlier this month are likely to put pressure on Mylan to the downside. Specifically, following its drop in the aftermath of its earnings announcement, MYL tried to bounce back, but it appears this move was less of a recovery and more of a dead-cat bounce. We are looking for Mylan shares  to continue rolling over and to move back down toward its recent lows around $40.

We recommended you “buy to open” the MYL April 45 Puts for $2.35 or less.

Mylan

For the week ahead, there are several events that we are watching to impact the market, including:

March 3 – ISM Non-Manufacturing PMI
March 3 – Factory Orders
March 4 – Non-Farm Payrolls
March 4 – Unemployment Rate
March 4 – Trade Balance
March 8 – Chinese Trade Balance
March 9 – Crude Oil Inventories

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.


Article printed from InvestorPlace Media, https://investorplace.com/2016/03/trade-of-the-day-mylan-myl/.

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