Market Overview

Is It Time To Short Orbitz Worldwide?

Shares of Orbitz Worldwide (NYSE: OWW) are trading higher on the session by 9.09%, at $3.00. The stock has been on a complete tear over the past few days, rocketing off of the 20-day moving average, through the 50-day, and is now testing the 200-day.

Shares have jumped from $1.75 to $3.00 during that time period on much higher than average volume (4x normal volume yesterday, today already at 2x normal volume).

Given the minimal short interest (2.91% of the float), it appears that the vast majority of this move has been made with long money. This begs the question of whether the stock can stay bid at these levels without a short-term pullback. It is plain to see, whether through Stoicastics or Bollinger Bands), that Orbitz Worldwide wholly overbought.

Traders can play the short side in a few ways. The first is by getting short shares here with a stop loss at the daily high ($3.09). The second is by buying an in-the-money put (such as the Dec2011 $5.00 strike) as a proxy for downside.

Orbitz Worldwide, Inc. is a global online travel company that uses technology to enable leisure and business travelers to search for and book a range of travel products and services.

Posted-In: Short Ideas Small Cap Analysis Technicals Options Markets Trading Ideas

 

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