NEW DIRECTIONAL PUT PLAYS

General Dynamics Corp - GD - close: 70.49 change: +0.09

Stop Loss: 72.25
Target(s): 65.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see Trigger

Company Description

Why We Like It:
GD has been struggling with a trend of lower highs for several weeks. Currently the stock is testing support near $70.00 and it's also testing support at the simple 200-dma. A breakdown now would be very bearish indeed. The late May low was $69.83. I am suggesting a trigger to buy put options at $69.75. If triggered our target is $65.50.

Trigger @ 69.75

- Suggested Positions -

buy the July $67.50 PUT (GD1116S67.5) current as $1.05

Annotated Chart:

Weekly Chart:

Entry on June xxth at $ xx.xx
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on June 9th, 2011