Editor's Note:

The market's recent strength has been very impressive. The earnings disappointments on Thursday night could spark a multi-day correction but odds are this might be a buy-the-dip type of opportunity. We don't know yet if tomorrow will offer any entry points but I would start making a list of stocks you may want to buy calls on a correction.


NEW DIRECTIONAL PUT PLAYS

Nike - NKE - close: 51.14 change: -0.39 stop: 53.51

Why We Like It:
NKE has been under performing the market over the last few weeks. The recent rally attempt failed near the $53.50 zone. Now shares are edging lower on rising volume. NKE still has support near $50.00. I'm suggesting new put positions now but more conservative traders may want to wait for a breakdown under $50.00 before initiating positions. Our first target is the $46.00-45.00 zone.

Suggested Options:
I am suggesting the August puts.

BUY PUT AUG 50.00 NKE-TJ open interest=6834 current ask $1.05
BUY PUT AUG 45.00 NKE-TI open interest=3169 current ask .15

Annotated Chart:

Picked on     July 23 at $ 51.14
Change since picked:      + 0.00
Earnings Date           09/23/09 (unconfirmed)
Average Daily Volume =       3.8 million  
Listed on  July 23, 2009