NEW DIRECTIONAL PUT PLAYS

Whirlpool Corp - WHR - close 97.71 change -0.23 stop 105.50

Company Description:
Whirlpool Corporation (Whirlpool) manufactures and markets a range of appliances and related products, primarily for home use. The Company's principal products are laundry appliances, refrigerators, cooking appliances, dishwashers, mixers and other small household appliances. It also produces hermetic compressors for refrigeration systems. Whirlpool manufactures products in 12 countries under 13 principal brand names and markets products worldwide. Whirlpool’s geographic segments consist of North America, Europe, Latin America and Asia.

Target(s): 95.10, 91.50, 86.05
Key Support/Resistance Areas: To Follow
Time Frame: 1 to 2 weeks

Comments:
WHR has been making lower highs and has broken many trend lines. The stock has one more trend line providing support from the July lows to the February lows. However, I think it only a matter of time before this is broken and the stock retests or breaks its recent lows near $91.50. WHR is also below its 20-day and 50-day SMA's and I think there is enough overhead resistance to enter short positions $98.80 which is below today's highs and the 20-day SMA. I am going to place a wide initial stop at $105.50 to account for volatility and will adjust it once we are in the position.

Suggested Position: Buy August $95.00 PUTS current ask $6.40, estimated ask at entry $5.90

Annotated chart:

Entry on June xx
Earnings 7/21/2010 (unconfirmed)
Average Daily Volume: 2 million
Listed on June 23, 2010