Buy Alert: March 26, 2014

| March 26, 2014

Buy Alert:  March 26, 2014


Trade Details

Buy Pandora Media (P) May 17th $32 Calls for $2.20 or better



Pandora is one of those polarizing stocks that investors tend to either love or hate.  The Internet music service is dealing with intense competition, but is also a first mover and has many loyal customers.

Lately, P has been getting hit hard as investors rotate out of Internet stocks and into safer sectors.  As such, the share price has dropped from the 50-day moving average around $35 all the way below the $30 support level.  But, I don’t think this selloff will hold.

P recently signed a partnership with Peet’s Coffee & Tea to roll out customized radio stations to 230 store locations.  More importantly, the company’s deal with major car manufacturers to offer its services in cars could be a huge boon in the coming months.

We’re going to spend a little more than normal on the calls in order to buy some extra time into mid-May.


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Category: OTW Buy Alerts