NEW DIRECTIONAL PUT PLAYS

POSCO - PKX - close: 78.35 change: -4.86 stop: 84.05

Why We Like It:
An upgrade to overweight this morning was not enough to save PKX's up trend. Commodity stocks are in retreat. This South Korean steel maker just broke its up trend with a drop under support at $80.00 and its 50-dma. I'm suggesting bearish positions now or on a bounce back toward the $80-82 zone. Our target is the $71.00-70.00 range.

Suggested Options:
I'm suggesting the July puts.

BUY PUT JUL 80.00 PKX-SP open interest= 200 current ask $5.70
BUY PUT JUL 75.00 PKX-SO open interest=  96 current ask $3.20
BUY PUT JUL 70.00 PKX-SN open interest=  50 current ask $1.60

Annotated Chart:

Picked on     June 22 at $ 78.35
Change since picked:      + 0.00
Earnings Date           07/09/09 (unconfirmed)
Average Daily Volume =       541 thousand 
Listed on  June 22, 2009         


Wynn Resorts - WYNN - close: 34.28 change: -2.58 stop: 37.65

Why We Like It:
The up trend in WYNN has been struggling. You could say the stock reversed into a new down trend with the early June failed rally at $42.00. Now shares are in the process of breaking support near $35.00. The World Bank's new forecast for the recession to deepen doesn't inspire any investor confidence for a consumer discretionary like WYNN. I'm suggesting bearish positions now. More conservative traders may want to wait for a little more confirmation. Our first target is $30.25. Our second target is $26.00.

Suggested Options:
I am suggesting the July puts. FYI: There are strikes available at $1.00 increments.

BUY PUT JUL 35.00 UWV-SQ open interest=2210 current ask $2.80
BUY PUT JUL 30.00 UWV-SF open interest=3264 current ask .85

Annotated Chart:

Picked on     June 22 at $ 34.28
Change since picked:      + 0.00
Earnings Date           07/30/09 (unconfirmed)
Average Daily Volume =       3.4 million  
Listed on  June 22, 2009