NEW DIRECTIONAL PUT PLAYS

Panera Bread Co. - PNRA - close: 117.20 change: -1.26

Stop Loss: 123.25
Target(s): 110.50, 102.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see Trigger

Company Description

Why We Like It:
It looks like the trend could be reversing for high-flying shares of PNRA. After peaking at resistance near $130 in early April the stock produced a lower high last week. Now PNRA is breaking down under support near $120 and its 50-dma. Aggressive traders may want to buy puts right now. I am suggesting we use a trigger to buy puts on a bounce at $119.00. If triggered at $119.00 we'll use a stop loss at $123.25. Our targets are the 100-dma (currently near $112.00, we'll take profits at $112.50) and the $102.50 level. Of course the 100-dma is a "moving" target so we'll have to make adjustments as the play progresses.

Trigger @ $119.00

- Suggested Positions -

Buy the June $110 PUTS (PNRA1118R110) current ask $2.20

Annotated Chart:

Entry on May xxth at $ xx.xx
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume = 647 thousand
Listed on May 3rd, 2011