NEW BEARISH Plays

ICICI Bank Ltd. - IBN - close: 33.28 change: -1.50

Stop Loss: 34.85
Target(s): 30.25
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
IBN is one of the largest banks in India. Shares have been trading with a bearish trend of lower highs against support near $33 and its 100-dma. The stock looks poised for a breakdown.

I am suggesting a trigger to launch bearish positions at $32.75 with a stop loss at $34.85, just above Thursday's high. Our target is $30.25. More aggressive traders could aim lower.

Trigger @ 32.75

Suggested Position: short IBN stock @ (trigger)

- or -

buy the May $32 PUT (IBN1219Q32) current ask $1.11

Annotated chart:

Entry on April xx at $ xx.xx
Earnings Date --/--/-- (unconfirmed)
Average Daily Volume = 1.9 million
Listed on April 14, 2011


IPG Photonics - IPGP - close: 48.47 change: -1.24

Stop Loss: 50.75
Target(s): 42.50
Current Gain/Loss: + 0.0%
Time Frame: up to its May 1st earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
IPGP is a technology company that makes lasers. Shares broke down under key support early last week. The oversold bounce has already reversed at new resistance. Friday's drop looks like a bearish entry point.

We want to keep our position size small because there is a risk of a short squeeze if the market suddenly bounces. The most recent data listed short interest at 17.5% of the 37.1 million-share float.

I am suggesting bearish positions at the open on Monday morning. We'll use a stop loss at $50.75. Our target is $42.50. More aggressive traders could aim lower. FYI: The Point & Figure chart for IPGP is bearish with a $42.00 target.

(Small Positions)

Suggested Position: short IPGP stock @ (the open)

- or -

buy the May $45 PUT (IPGP1219Q45) current ask $1.85

Annotated chart:

Entry on April xx at $ xx.xx
Earnings Date 05/01/12 (confirmed)
Average Daily Volume = 400 thousand
Listed on April 14, 2011


Rovi Corp. - ROVI - close: 29.18 change: -0.90

Stop Loss: 30.50
Target(s): 26.25
Current Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ROVI is in the multimedia technology industry. The stock has been fading lower for weeks. This past week saw a breakdown under support near $31 and its 100-dma, and round-number support at $30.00. The oversold bounce on Thursday didn't get very far. Now ROVI looks poised to accelerate lower.

There is potential support near $28.00 and $26.00. We are setting our exit target at $26.25. I'm suggesting bullish positions at the open on Monday morning. We'll use a stop loss at $30.55.

open positions on Monday morning

Suggested Position: short ROVI stock @ (the open)

- or -

buy the MAY $30 PUT (ROVI1219Q30) current ask $2.35

Annotated chart:

Entry on April xx at $ xx.xx
Earnings Date 05/10/12 (unconfirmed)
Average Daily Volume = 1.2 million
Listed on April 14, 2011