Red’s Options Alert: ACE Limited (NYSE:ACE)

Our LTN Options Alert filter saw an unusual volume of Call contracts traded Friday. There were 1,198 Calls traded vs the 10 day average volume of 343 contracts. On the Put side, 315 Put contracts traded.

The traded Put/Call ratio is 0.26, meaning that there were 3.80 calls traded for each put contract.

On the Unusual Trading Action; the following alerts were raised:

1. Unusual Call Volume

2.Low Put/Call Ratio

Note: Players use options as predictors of a stock’s behavior, and also use Put/Call ratios as technical indicators to read for signs of institutional sentiment.

The Put/Call ratios offer insight to player sentiment, and can be used as either a direct or contrarian indicator for trading decisions. Unusual volume provides reliable clues that the stock is expected to make a move.

ACE Limited closed at 63.34 on Thursday, and opened Friday at 63.62.

The stock price rose 2.40 (+3.79%) to 65.74 on Friday at the close.

ACE traded between 63.20 and 65.79 Friday.

Volume: 3,593,100/shrs is about 2 + times the 3 month average volume of 1,779,110/shrs.

ACE is trading above its 50 and 200 Day Moving Averages.

The stock’s 52 week low is 47.59 and 52 week high is 65.79, its P/E ratio is 7.22, its EPS is 9.11 and its Div and Yield is 1.32 (2.10%).

Price Performance Metrics for ACE Limited: Wk: 3.63% Mo: 8.29% Q: 9.68% 6 Mo: 24.23% Yr: 32.70%

Analysis Overall Short Intermediate Long
Bullish (0.48) Bullish (0.32) Very Bullish (0.52) Very Bullish (0.58)

Recent CandleStick Analysis Neutral
Date Candle
15 Feb 2011 DOJI

Open Gaps
Direction Date Range
Up 13 Sept 2010 55.83 to 55.85
Up 1 Sept 2010 53.54 to 53.76

Support and Resistance
Type Value Conf.
resis
supp

NIL
65.03

1
supp 64.27 2
supp 62.71 6
supp 62.14 5
supp 61.44 5
supp 60.48 5
supp 59.74 7
supp 58.90 2

The 1y Estimated Target is 73.02

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Posted by Shayne Heffernan on Feb 20th, 2011and filed underEquities, Latest News, Markets, News & Events, USA.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site