NEW DIRECTIONAL PUT PLAYS

T.Rowe Price Associates - TROW - close: 56.68 change: -0.03

Stop Loss: 62.25
Target(s): 55.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see Trigger

Company Description

Why We Like It:
The stock market is oversold and could bounce soon. If and when it does bounce we want to be ready to launch new bearish positions as stocks near resistance. TROW has broken down under key support near $60 and its 200-dma in the last couple of weeks. Volume has been very strong on the sell-off. I'm expecting $60.00 to be new resistance. We want to buy puts on a bounce at $59.50. If triggered we'll use a stop loss at $62.25. Our target is $55.25. FYI: The Point & Figure chart for TROW is bullish with a $51 target.

Trigger @ 59.50

- Suggested Positions -

buy the July $60 PUT (TROW1116S60) current ask $4.10 (they'll be cheaper when TROW bounces to our trigger at $59.50)

Annotated Chart:

Entry on June xxth at $ xx.xx
Earnings Date 07/26/11 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on June 13th, 2011