• Chart of the Day: Tempur-Pedic International Inc. (TPX)

    by  • November 8, 2012 3:10 pm • Charts to Watch, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart is of Tempur-Pedic International Inc. (TPX) which manufactures, markets, and distributes bedding products in North America and internationally.  It offers mattresses, pillows, and adjustable bed bases, as well as various cushions and other comfort products.

    Ticker:  Tempur-Pedic International Inc. (TPX)

    Strategy:  Short Trade

    What I Am Looking At:

    • Series of strong downside gaps indicating a negative fundamental change
    • Huge underperformance, down more than 60 percent year-over-year
    • Recently reported Q3 earnings results which fell short of expectations
    • Bearish Head & Shoulders topping pattern, recent backtest of neckline
    • Trading below key moving averages
    • Short interest has decreased more than 68 percent year-to-date
    • Schaeffer’s Open Interest Ratio (SOIR) stands at 0.59, indicating an extreme preference for calls versus puts
    • 4 analysts maintain “strong buys” on TPX, downgrade potential


    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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