TTEK, Again

I wrote about Tetra Tech, Inc (NASDAQ:TTEK) almost a full month ago and considered selling puts on it.  My limit never hit and it’s now time to regroup and consider a new move.  I made the mistake of not continuing to follow it like I planned to when I entered my limit order, but looking back through my journal I see what brought it to my attention originally and still like it.  Jim Cramer mentioned it as a buy last night and that’s what got me back to thinking about it today.

Check out the chart attached below.  I circled three key points (at least in my mind).  The first is where I first wrote about TTEK and said it would dip before rising.  If my patting myself on my back doesn’t distract you too much, see how it hit it’s short-term high three days later before dipping to within $.025 of where I said it would go (that’s the second circle I drew on my chart).  The third circle shows where it dug in to the rising trend line and didn’t break it.  If I had been paying attention and not busy working, that six day period would have shouted a buying opportunity to me.  TTEK is off its lows now and doesn’t appear likely to come back below 21 again in the near term.  TTEK closed yesterday at 21.45, 0.39 above where it was last month when I first wrote about it.  That’s a long way from the 20 strike and the option premiums show it.  For call buyers, the July 20 could be an interesting move.  For me, as a put seller, the July 22.50 seems more attractive.  I’d be writing in the money on a company that has a PEG over 2.00.  That gives me a little pause and will cause me to watch a little longer before trading.  That little longer may be before 10:00 am today or a couple of weeks.