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NEW DIRECTIONAL PUT PLAYS

Alliant Tech - ATK - close: 77.57 change: -1.05 stop: 82.55

Why We Like It:
Shares of ATK have developed a very bearish pattern of lower highs and lower lows. Investors have been selling rallies near the falling 100-dma. Now the stock is poised to breakdown under its late January low near $77.00. I'm listing two different entry points to take advantage of ATK's weakness.

Our first trigger to buy puts is at $76.75, which would be a new relative low. If triggered at $76.75 we'll use a stop loss at 80.55 to start. Our alternative trigger and preferred entry point would be a bounce back into the $79.50-80.50 zone. If triggered at $79.50 we'll use a stop loss at $82.55.

Our target is $71.75. The P&F chart is bearish and points to a $70 target.

Suggested Options:
We are suggesting the March puts. It is up to the individual trader to decide which month and which strike price best suits your trading style and risk profile.

BUY PUT MAR 80.00 ATK-OP open interest= 115 current ask $4.60
BUY PUT MAR 75.00 ATK-OO open interest= 162 current ask $2.35

Annotated Chart:
ATK

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           05/07/09 (unconfirmed)
Average Daily Volume =       522 thousand 


Intuitive Surgical - ISRG - close: 106.81 change: -0.46 stop: 110.55

Why We Like It:
ISRG is the high-tech surgery equipment and robotics maker. The stock has fallen into a bearish trend of lower highs and lower lows. The January bounce has run into resistance around its descending 40 and 50-dma. Now shares look poised to begin the next leg lower. I am suggesting that readers buy puts on a breakdown under support near $104.00. Our trigger to open positions will be $103.40. If triggered our target is $92.00. The stock can be volatile so be careful. FYI: The Point & Figure chart is bearish with a $90 target.

Suggested Options:
We are suggesting the March puts.

BUY PUT MAR 105.0 AXQ-OA open interest= 142 current ask $7.20
BUY PUT MAR 100.0 AXQ-OT open interest= 400 current ask $5.00
BUY PUT MAR 95.00 AXQ-OS open interest= 835 current ask $3.40

Annotated Chart:
ISRG

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           04/16/09 (unconfirmed)
Average Daily Volume =       1.7 million  


Lam Research - LRCX - close: 19.84 change: -0.14 stop: 21.05

Why We Like It:
The SOX semiconductor sector was actually one of the best performers intraday on Wednesday but the rally faded into the closing bell. Shares of LRCX turned negative and looks poised to begin a new leg lower. I am suggesting that readers wait for a breakdown under short-term support near $19.00. We'll use a trigger at $18.90. If triggered our first target is $16.85. Our secondary target is $15.10. The Point & Figure chart is bearish with a $14.00 target. FYI: An alternative entry point would be another failed rally under $21.00. We are using a wide stop loss.

Suggested Options:

BUY PUT MAR 20.00 LMQ-OD open interest=2338 current ask $1.65
BUY PUT MAR 17.50 LMQ-OW open interest=1094 current ask $0.70
BUY PUT MAR 15.00 LMQ-OC open interest=9083 current ask $0.25

Annotated Chart:
LRCX

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           04/23/09 (unconfirmed)
Average Daily Volume =       3.7 million  


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