NEW BEARISH Plays

AFLAC Inc. - AFL - close: 41.96 change: -1.34

Stop Loss: 44.65
Target(s): 37.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of AFL have been churning sideways in a tug-of-war between the bulls and the bears for over two weeks. It looks like the bears are winning. The stock just broke down under short-term support. AFL could see a retracement back toward the $37.50 area.

I am suggesting small bearish positions at the open tomorrow. We want to keep our positions small to limit our risk. The $40.00 level could be possible support so don't be surprised to see a bounce. We'll start with a stop loss at $44.65.

AFL's Point & Figure chart is still bullish but it's on the verge of a new sell signal.

(Small Positions)

Suggested Position: Short AFL stock @ the open

- or -

buy the DEC $40 PUT (AFL1117x40) current ask $1.76

Annotated chart:

Entry on November xx at $ xx.xx
Earnings Date 02/01/12 (unconfirmed)
Average Daily Volume = 4.3 million
Listed on November 17, 2011