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NYSE Group, Inc. (NYSE: NYX) opened at $89.60. So far today the stock has hit a low of $88.46 and a high of $90.00. NYX is now trading at 89.75, up 1.33 (1.5%).After hitting a one year high of 112.00 in November, the stock has been relatively flat around 100 until it dove down below 90 over the past week. NYX shares are up despite a competitor's disappointing earnings release this morning. The Nasdaq Exchange (NASDAQ: NDAQ) also failed in its takeover bid for the London Stock Exchange, and rumors are swirling that the LSE could look to partner with NYX. Recent technical indicators for NYX have been bearish and steady.
For a bullish hedged play on this stock, I would consider a March bull-put credit spread below the $75 range. NYX hasn't been below 75 since September and has shown support around 79.00. This trade could be risky if the stock market makes a decent sized correction, since the exchanges get hit hard when trading slows. However, if NYX does falter, the support formed in October around 75 could protect this position.
Brent Archer is an analyst on the move at Investors Observer. (Free Subscription)
DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about.
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