Editor's Note:

If you're looking for another trading idea I almost added a strangle play on AMZN currently at $84.29. The long-term trend is now up but the post-earnings rally failed and shares have reversed. I believe the jobs report on Friday could be a market mover and options are cheap right now. Traders could buy a strangle on AMZN with the August $80 puts and August $90 calls for less than $2.00. You'll want to open positions on Thursday in front of the jobs report.


NEW DIRECTIONAL PUT PLAYS

Lockheed Martin - LMT - close: 74.32 change: -1.15 stop: 77.05

Why We Like It:
LMT has been under performing both the S&P 500 and the defense sector. Shares have not participated in the market's rally and the sideways consolidation looks like it's about to breakdown into another leg lower. I'm suggesting put positions now. More conservative traders can wait for a new relative low under $73.00. Our first target is $70.25. Our second target is $66.00. Currently the Point & Figure chart is bearish with a $65 target. FYI: More conservative traders might want to consider a tighter stop just above the $76.00 level.

Note: Traders should be aware that ATK reports earnings tomorrow morning and their results could have affect on the whole defense sector.

Suggested Options:
I am suggesting the August or September puts. Don't forget that August puts expire in about two weeks.

BUY PUT AUG 75.00 LMT-TO open interest=2943 current ask $2.20
BUY PUT AUG 70.00 LMT-TN open interest=1835 current ask .50

BUY PUT SEP 75.00 LMT-UO open interest=10482 current ask $3.80
BUY PUT SEP 70.00 LMT-UN open interest= 8249 current ask $1.60

Annotated Chart:

Picked on   August 05 at $ 74.32
Change since picked:      + 0.00
Earnings Date           10/21/09 (unconfirmed)
Average Daily Volume =       3.4 million  
Listed on August 05, 2009         


Wynn Resorts - WYNN - close: 56.57 change: -1.43 stop: 60.26

Why We Like It:
I'm taking a gamble that after a 100% rally in WYNN the short-squeeze is topping out. The $60.00 level is overhead resistance and the rally reversed under $60 this morning. Shares are obviously overbought and due for a correction. Due to the high-risk nature of the trade I am suggesting very small position sizes at least 1/2 to 1/4 your normal trade. Our first target is $51.00. Our second target is $48.00.

Suggested Options:
I am suggesting the August or September puts. Don't forget that August puts expire in about two weeks.

BUY PUT AUG 60.00 UWY-TL open interest=1691 current ask $5.60
BUY PUT AUG 55.00 UWY-TK open interest=3185 current ask $2.80
BUY PUT AUG 50.00 UWY-TJ open interest=10115 current ask $1.20

BUY PUT SEP 55.00 UWY-UK open interest= 956 current ask $4.70
BUY PUT SEP 50.00 UWY-UJ open interest= 913 current ask $2.75

Weekly Chart:

Daily Chart:

Picked on   August 05 at $ 56.57
Change since picked:      + 0.00
Earnings Date           10/29/09 (unconfirmed)
Average Daily Volume =       4.7 million  
Listed on August 05, 2009