NEW BEARISH Plays

Teradata Corp. - TDC - close: 44.07 change: -1.40

Stop Loss: 47.05
Target(s): 37.00
Current Gain/Loss: unopened

Entry on November -- at $--.--
Listed on October 31, 2013
Time Frame: 4 to 8 weeks
Average Daily Volume = 4.1 million
New Positions: Yes, see below

Company Description

Why We Like It:
TDC is in the technology sector. The company provides data warehousing solutions. The stock was crushed on October 15th with a -18% plunge after the company issued an earnings warning. The warning sparked a wave of analyst downgrades. The stock managed a +13% bounce off its October lows before starting to reverse yesterday. The company reported earnings this morning (Oct. 31st) that beat by a penny and revenues also came in a hair better than expectations. Management reaffirmed their newly lowered guidance.

TDC looks like it's ready to retest its lows or worse. Today's low was $43.75. I am suggesting a trigger to open bearish positions at $43.50. The $40.00 level might be round-number support but we're aiming for $37.00. FYI: The Point & Figure chart for TDC is bearish with a $22.00 target.

Trigger @ 43.50

Suggested Position: short TDC stock @ (trigger)

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

Buy the 2014 Jan $40 PUT (TDC1418m40) current ask $0.85

Annotated chart: