|eSignal chart w/custom indicators|
Most recent trend points to a scenario where TEVA's ADR price is looking to break out. Right now, it is testing it's trend line resistance. Furthermore, volatility had fallen near to its low ranges, indicating that time is right for any fundamental news to be able to push the ADR with greater ease.
For example, on June 24, 2013, TEVA launched generic version of Viagra (sildenafil) in countries across Europe. Furthermore, earnings are expected to be announced on August 1, 2013. Perhaps, earnings report and conference call will shed some more light on whether the new CEO and management team (who took over in May 2012) has taken substantive steps to improve the long-term business outlook of the company during their first year at the helm.
|LiveVolPro screen capture|
September implied volatility of 19.5 still look reasonable given that price fluctuation of TEVA shares have averaged 20 vol over the past few months.
Volatility: Consider going long Sep 20 straddle & scalp gamma.
Directional: Consider going long Sep 40 or Sep 42.5 calls or the Sep 40/42.5 call spread.