Pitney Bowes Inc (PBI) is a provider of a range of office hardware and software for the management of physical and digital communication channels. Shares of PBI are currently trading around $21.85 in a 52 week range of $10.34-$22.11. The stock has been outperforming the market this year adding over 105% to share prices year to date. Bullish order flows we’ve seen in PBI in today’s trading session indicate this rally could continue. Early in trading a trader bought 5,000 PBI Nov 22 Calls for $0.35. This was one of the largest blocks to trade in PBI today as option volume in the name reaches over 3 times the average daily volume. PBI is also setting up well for a long on the chart. Shares are trading well above the Ichimoku Cloud and the future cloud is upward sloping suggesting the stock’s rally could continue. With shares of PBI just off of their 52 week highs we believe there is an opportunity here for a swing trade.
Trade: Buying shares of PBI stock at $21.85 with a stop at $20.50
Risk: $1.35 per share
Target #1: $22.55
Target #2: $23.25
Target #3: $24.60
