NEW DIRECTIONAL PUT PLAYS

iShares Biotech - IBB - close: 77.86 change: -1.03 stop: 80.05

Why We Like It:
Biotech stocks are rolling over. The BTK index is failing under the 900 level. In a similar fashion the IBB has failed near $80.00. This failed rally pattern is a new entry point for bearish trades. I'm suggesting put positions now with a stop loss at $80.05. The biotech stocks can be a volatile group so I'm suggesting small positions. Our target is near the November lows at $73.50.

Suggested Options:
I'm suggesting the December puts. My preference is for the $75 strike.

BUY PUT DEC 75.00 IBB-XO open interest=1192 current ask $1.00

Annotated Chart:

Picked on  November 19 at $ 77.86
Change since picked:       + 0.00
Earnings Date            --/--/--
Average Daily Volume =        4.9 million  
Listed on  November 19, 2009