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CTSH - Cognizant Technology Solutions $45.52

Cognizant Technology Solutions Corporation is a provider of custom information technology services related to information technology design, development, integration and maintenance services for Fortune 1,000 companies located in the United States and Europe. Cognizant's core competencies include Web-centric applications, data warehousing, component-based development and legacy and client-server systems. Cognizant provides the IT services it offers using an integrated onsite/offshore business model, which combines technical and account management teams located onsite at the customer location and offshore at dedicated development centers located in India and Ireland.

CTSH was among the "big movers" during Friday's session, up over 5% after Morgan Stanley raised its rating on the company to "overweight" from "underweight," citing strong volume growth. The bullish activity extended a two-day rally in the wake of the firm's quarterly report, which was highlighted by earnings of $30.6 million, or $0.21 per share, up from $17.7 million, or $0.13 per share a year ago.

Obviously, the company's fundamentals are solid and the recent technical indications support a bullish trend in the coming weeks. Traders should target a higher credit in the spread initially, to take advantage of any short-term consolidation in the issue.

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

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

PLAY (conservative - bullish/credit spread):

BUY PUT MAR-35.00 UPU-OG OI=805 ASK=$0.25
SELL PUT MAR-40.00 UPU-OH OI=926 BID=$0.55

POTENTIAL PROFIT (X 5 contracts) = $175
COST BASIS = $39.65
LOSS-LIMIT/EXIT POINT = $41.00 (cons) - $39.75 (aggr)

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