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VRNT - Verint Systems $38.01

Verint Systems (NASDAQ:VRNT) is a provider of analytic
software-based solutions for the security and business
intelligence markets. The company's solutions for the
security market are mainly communications interception
devices used by law enforcement agencies, government
agencies and telecommunications carriers, and networked
video systems used by government agencies, and public
and private organizations affilioated with airports, public
buildings, financial institutions, retail stores, correctional
facilities and corporate sites.

Verint's solutions for the business intelligence market are
generally products for enterprises that rely on contact
centers for voice, e-mail and Internet interactions with
their customers. The business intelligence system uses
networked video information to allow enterprises and
institutions to enhance their operations, processes and
performance.

Shares of VRNT rallied Tuesday after J.P. Morgan raised
its investment rating on the company to "overweight"
from "neutral," citing expectations for sales growth and
valuation. The renewed buying pressure appears to
have rejuvenated the issue's recent bullish trend and
traders who believe the upside activity will continue
can profit from that outcome with this position. Target
a higher "net-credit" in the spread initially to increase
the potential return on investment.

Fundamentals: http://finance.yahoo.com/q/ks?s=VRNT&quicken=2

Chart: http://finance.yahoo.com/q/bc?s=VRNT&t=6m

PLAY (very conservative - bullish/credit spread):


BUY PUT FEB-30.00 JOQ-NF OI=85 ASK=$0.25
SELL PUT FEB-35.00 JOQ-NG OI=96 BID=$0.50


INITIAL "NET-CREDIT" TARGET = $0.30-$0.40

POTENTIAL PROFIT (X 5 contracts) = $150
RETURN ON INVESTMENT (max) = 6%
COST BASIS = $34.70
LOSS-LIMIT/EXIT POINT = $35.25 (aggr) - $36.00 (cons)

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