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On Friday, Priceline.com (NASDAQ:PCLN) shot past its 52-week high to close at $646.00/share. The stock has been on a serious run lately, and on Friday, it moved up another $8.54/share for the day.

Pricleline.com operates as an online travel company. The company provides price-disclosed hotel reservation services on a worldwide basis, with approximately 185,000 hotels and accommodations in 160 countries primarily under the Booking.com, priceline.com, and Agoda brand names; and price-disclosed rental car reservation services in approximately 4,000 locations worldwide through rentalcars.com name. It also offers retail airline tickets, hotel room reservation, and rental car services through its Name Your Own Price demand-collection system, as well as vacation packages consisting of airfare, hotel, and rental car components; cruise trips; and destination services, including parking, event tickets, ground transfers, and tours in the United States

52wk high: 646.00
52wk low: 411.26
EPS: 20.63
PE: 31.30
Div Rate: N/A
Yield: N/A
Market Cap: 32.16 B
Volume: 1.15 M

In a one month time-span, Priceline.com has gone from a low of $520.00/share to $645.00/share. This is what I call a bit overdone:

Date Open High Low Close Volume
Mar 1, 2012 626.03 638.56 626.00 637.32 1,054,373
Feb 29, 2012 632.40 634.66 626.42 627.02 1,249,793
Feb 28, 2012 634.81 637.88 627.31 632.76 2,768,158
Feb 27, 2012 594.95 597.00 587.13 591.54 1,882,400
Feb 24, 2012 590.17 595.84 589.77 590.41 945,994
Feb 23, 2012 588.53 593.82 585.24 587.40 717,386
Feb 22, 2012 585.00 591.00 581.25 587.72 868,190
Feb 21, 2012 585.52 593.00 579.28 584.75 814,116
Feb 17, 2012 582.52 582.52 582.52 582.52 760,800
Feb 16, 2012 570.39 574.24 558.15 571.32 745,356
Feb 15, 2012 581.02 584.88 568.61 570.30 944,803
Feb 14, 2012 569.42 588.56 569.42 576.94 1,231,819
Feb 13, 2012 549.43 573.13 547.10 571.15 1,381,821
Feb 10, 2012 533.65 546.90 533.24 545.04 1,014,940
Feb 9, 2012 537.46 542.96 533.23 540.13 689,536
Feb 8, 2012 527.54 538.81 527.38 538.37 915,769
Feb 7, 2012 535.80 538.75 527.62 529.19 907,612
Feb 6, 2012 544.80 547.60 536.61 536.73 717,055
Feb 3, 2012 538.63 549.00 537.52 546.98 826,724
Feb 2, 2012 535.00 536.50 529.93 533.83 500,625

It is one thing to see a large run-up in price with a stock such as Apple (NASDAQ:AAPL), but I believe the upswing with Priceline.com is overbought. Apple recently posted great numbers on its last earnings report and sales are completely booming. I recommend buying more call options with Apple.

On the other hand, I see a great opportunity to take advantage of Priceline.com's large price increase in such a short period by purchasing out-of-the-money put options. While these options are never cheap with a stock such as this, in the event it takes a minor hiatus from it current price-per-share, the payouts will be very rewarding.

Analyst recommendations over the past year are in-line with where the stock is trading right now. While there are some $750.00/share price targets, I just do not see this happening. A pullback is due soon.

28-Feb-12 Reiterated UBS Neutral $550 → $680
28-Feb-12 Reiterated The Benchmark Company Buy $638 → $692
28-Feb-12 Reiterated Stifel Nicolaus Buy $555 → $750
28-Feb-12 Reiterated RBC Capital Mkts Outperform $675 → $725
08-Nov-11 Reiterated UBS Neutral $575 → $590
09-Sep-11 Initiated Wedbush Outperform $675
25-Aug-11 Initiated Barclays Capital Overweight $600
05-Aug-11 Reiterated UBS Neutral $550 → $575
05-Aug-11 Reiterated The Benchmark Company Buy $676 → $690
05-Aug-11 Reiterated Deutsche Bank Buy $625 → $640
09-May-11 Reiterated Deutsche Bank Buy $540 → $625
06-May-11 Reiterated The Benchmark Company Buy $660 → $676
06-May-11 Reiterated Caris & Company Buy $555 → $630
02-May-11 Reiterated The Benchmark Company Buy $570 → $660
25-Apr-11 Reiterated Caris & Company Buy $525 → $555
24-Feb-11 Reiterated The Benchmark Company Buy $504 → $570
24-Feb-11 Reiterated RBC Capital Mkts Outperform $450 → $565
24-Feb-11 Reiterated Caris & Company Buy $470 → $525

What I recommend is purchasing April 2012 $620.00 put options. This will give you a month and a half of time-value. If the stock retreats soon, as I believe it will, I will not hesitate to take profits early on this trade. There is no sense in being greedy. A profit is a profit.

Source: Priceline.com: A Pullback Is Due, Time To Buy Some Put Options

Additional disclosure: I will be purchasing PCLN put options this week.