NEW BEARISH Plays

NetApp, Inc. - NTAP - close: 38.48 change: -0.81

Stop Loss: 40.25
Target(s): 34.50
Current Gain/Loss: unopened
Time Frame: exit prior to the late May earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
NTAP's big oversold bounce from May 1st has already been erased. Shares are falling toward support near $38.00. If shares breakdown here it could signal a drop toward the $34.00 area.

I am suggesting a trigger to launch bearish positions at $37.75. Our target is $34.50. We do not want to hold over the late May earnings report (date still unconfirmed). FYI: The Point & Figure chart for NTAP is bearish with a $31 target.

Trigger @ 37.75

Suggested Position: short NTAP stock @ (trigger)

- or -

buy the May $37 PUT (NTAP1219Q37) current ask $0.47

Annotated chart:

Entry on May xx at $ xx.xx
Earnings Date 05/23/12 (unconfirmed)
Average Daily Volume = 6.2 million
Listed on May 3, 2011