NEW BEARISH Plays

Vistaprint N.V. - VPRT - close: 34.44 change: -0.84

Stop Loss: 36.15
Target(s): 30.25
Current Gain/Loss: + 0.0%

Entry on September 27 at $ xx.xx
Listed on September 26, 2011
Time Frame: 3 to 5 weeks
Average Daily Volume = 572 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
VPRT is an online service for printing and marketing materials. The stock reversed at resistance back in August. There was a bounce at $35.00 but the rebound lost momentum. Now shares are breaking down through support.

I am suggesting small bearish positions at the opening bell tomorrow. Readers may want to consider using put options to limit their risk. I do consider a higher-risk trade because the most recent data listed short interest at 28.4% of the small 21.9 million share float. There is a risk of a short squeeze.

We will start with a stop loss at $36.15. Our target is $30.25.

*Small Positions*

Suggested Position: short VPRT stock @ (the open)

- (or for more adventurous traders, try this option) -

buy the Oct $35 PUT (VPRT1220v35) current ask $2.10

Annotated chart: