Syneron Medical Ltd. (ELOS) - post financial surge creates opportunity for put options play

Recent news

Recent release of positive financial results caused Syneron's stock (ELOS) to surge 20.7% in a single trading session.  This pushed the stock up much above it's 50- and 200-day moving average with unusually high trading volume.  In addition, ELOS shot up to its peak share price in 2 years following company's reporting.  

Why is this a great opportunity?

1.  ELOS is temporarily out of line due to recent news (~20% surge in 1 day)

2.  Historical data show steady share price movement (~20% change in 1 year)

3.  Trading volume increased 10 times (~2,000,000) on the news but quickly dropped

4.  Historical data show low trading volume (< 200,000)

5.  Investors may want to take profit leading to a sell off in the next few weeks

Trading map

Purchase Mar $12.5 put options @ $0.20 in anticipation of a price correction (i.e. drop in share price) in the next few weeks.  

About Syneron

Syneron Medical Ltd., together with its subsidiaries, engages in the research, development, marketing, and sale of aesthetic medical products worldwide. The company develops products based on its proprietary ELOS technology, which combines conducted radiofrequency energy, an electrical energy; and light or laser-based energy, an optical energy. Its products target a range of non-invasive aesthetic medical procedures, including hair removal, wrinkle reduction, and rejuvenation of the skin’s appearance through the treatment of superficial benign vascular and pigmented lesions, acne treatment, treatment of leg veins, treatment for the temporary reduction in the appearance of cellulite and thigh circumference, ablation and resurfacing of the skin, and invasive products for laser-assisted lipolysis, as well as develops dental laser devices. The company sells its products primarily to physicians and other practitioners, including plastic surgeons, aestheticians, medical spas, dentists, dermatologists, and cosmetic physicians. The company sells its products primarily to physicians and other practitioners, including plastic surgeons, aestheticians, medical spas, dentists, dermatologists, and cosmetic physicians. Syneron Medical Ltd. sells its products through a direct sales force in the United States and Canada, and through distributors in Europe, the Middle East, South Africa, the Asia-Pacific region, and South and Central America. The company was founded in 2000 and is headquartered in Yokneam Illit, Israel.