• Chart of the Day: Herbalife Ltd. (HLF)

    by  • March 8, 2013 11:49 am • Charts to Watch, Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart is of Herbalife Ltd. (HLF) which is a network marketing company, that sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, and personal care products worldwide.

    Ticker:  Herbalife Ltd. (HLF)

    Strategy:  Straddle – long volatility

    What I Am Looking At:

    • Outperformance on a year-to-date basis, +25 percent, but underperforming on a year-over-year basis
    • Triangle forming (showing contraction) around the round number $40 level and major Volume by Price node
    • Chart shows the Bollinger Band Width is at a level which could portend to an imminent increase in volatility
    • Numerous market-moving catalysts in this name
    • Today, 13D filing reveals Icahn raised state to 15.55% from 13.6%
    • Short interest continues to be sky-high (36 percent of the float), potential for big moves to occur
    • 7 out of 9 analysts rate the shares a “strong buy”
    • Annual EPS growth past 5 years is 25.19%, while annual sales growth is 13.67%
    • Next earnings report is 4/29, unconfirmed


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    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.


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