NEW DIRECTIONAL PUT PLAYS

Compass Minerals Intl. - CMP - cls: 53.87 change: +0.95 stop: 56.26

Why We Like It:
The trading in CMP has moved from a huge bear-flag to just a large one. The two-month bounce from Aril is fading fast and CMP is poised to breakdown again. I'm suggesting readers use a trigger to buy puts at $52.25, which would be a breakdown under support at $52.50 and its 50-dma. If triggered at $52.25 our first target is $47.50. Our second target is $43.00.

Suggested Options:
I am suggesting the July or August puts. I prefer August strikes.

BUY PUT JUL 55.00 CMP-SK open interest= 426 current ask $2.45
BUY PUT JUL 50.00 CMP-SJ open interest= 380 current ask .60

BUY PUT AUG 55.00 CMP-TK open interest=  10 current ask $4.30
BUY PUT AUG 50.00 CMP-TJ open interest=  51 current ask $2.15

Annotated Daily Chart:

Annotated Weekly Chart:

Picked on     June xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           07/27/09 (unconfirmed)
Average Daily Volume =       792 thousand 
Listed on  June 29, 2009