Market Overview

STAAR Surgical Surges to All-Time High

Shares of STAAR Surgical (NASDAQ: STAA) are screaming higher today; currently, STAA is higher by 6.52%, trading at $10.46. The stock surged to a fresh daily, as well as all-time, high shortly ago. STAA now has its sight set on the 2003 high near $15.00.

Short to medium term momentum is on the stock's side as well. The 20-day and 50-day moving averages are both upward-sloping; both have also been tested and confirmed as support.

Note the short interest of 6.09%, which should also add some fuel to the bull's fire around this level.

So…What's the Trade?

Swing/momentum traders can get long the name here with a tight stop below the $10.36, intra-day break level. If shares breech there, they are would more than likely have to re-test the 20-day moving average.

Options traders can use the well-established levels to their advantage: namely the $9.00 support level and the $10.61 resistance level. Buying the March 2012 $10/10 risk reversal for a net debit of $0.50-0.60 would work well. This trade essentially gets long the stock at $9.00, while placing your long option in-the-money.

STAAR Surgical Company designs, develops, manufactures and sells implantable lenses for the eye. STAAR makes lenses both for use in surgery that treats cataracts, and for use in corrective or refractive surgery.

Posted-In: Long Ideas Technicals Options Markets Trading Ideas

 

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