Monday, 2 December 2013

Morrison (MRW) ... supermarket sweep

Monday 2nd December 2013

Courtesy of my friends at Cantor, I've managed to pocket a few December 260 Calls in Morrison (MRW, mkt cap £6bn) at 4p. Tesco's has its Q3 IMS due this Wednesday 4th, which may set the scene in the run up to the Call's December 20th expiration. In the meantime, MRW is majorly oversold and has typically bounced around 7% following the last seven occasions into RSI territory down here. Further, at 259p/shr, it's nudged below what has been a rising channel since February last; this may prove a bear trap. The next few days will likely decide if I'm off my trolley, but at 4p per December 260 Call, or a cost of 1.5% (4/259), I find this a risk worth taking. An unexpected bounce could prompt a 3-5x return and a jolly nice Christmas. 

MRW - oversold, bear trap in a rising channel?
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