Medtronic Poised to Jump After Earnings
by Jon Lewis 08/19/09
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Sentiment toward Medtronic, although mixed, contains enough pessimism to sustain the stock's current momentum.
This caution is evident among options players, who have bumped up the volume on MDT puts to push the put/call ratio to just shy of an annual high. Such peaks in the ratio are usually accompanied by strength in the stock.
Medtronic reports on Aug. 25, so we have time to pick an optimal entry point. With the 10-day as support and fear among options players poised to unwind, MDT is looking like a solid earnings play on the long side.
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