NEW DIRECTIONAL PUT PLAYS

Whole Foods Market - WFM - close: 59.58 change: -1.58

Stop Loss: 61.55
Target(s): 55.10, 52.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
WFMI changed their ticker symbol to WFM last month. The stock has spent most of May consolidating sideways with a bearish trend of lower highs. This follows a bearish double top pattern formed in April. Now the stock is flirting with a breakdown under technical support at its 100-dma. The low today was $58.80. I am suggesting a trigger to buy puts at $58.70. If triggered we will use a stop loss at $61.55. Our targets are $55.10 and $52.00.

Trigger @ 58.70

- Suggested Positions -

Buy the June $60 PUT (WFM1118R60) current ask $1.66

- or -

Buy the July $55 PUT (WFM1116S55) current ask $0.83

Annotated Chart:

Entry on June xxth at $ xx.xx
Earnings Date 08/11/11 (unconfirmed)
Average Daily Volume = 1.6 million
Listed on June 1st, 2011