NEW DIRECTIONAL PUT PLAYS

Cognizant Technology - CTSH - close: 71.66 change: -0.40

Stop Loss: 73.05
Target(s): 68.00, 65.25
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The oversold bounce in CTSH looks like it's gone too far too fast. Now the rebound has stalled at resistance near $72.50 and its 200-dma and its trend of lower highs. I am suggesting we launch small bearish put positions now with a stop at $73.05. Our first target is $68.00. Our second target is $65.25.

- Suggested (SMALL) Positions -

buy the July $70 PUT (CTSH1116S70) current ask $1.60

- or -

buy the Aug $67.50 PUT (CTSH1120T65.7) current ask $2.30

Annotated Chart:

Entry on June 23 at $ xx.xx
Earnings Date 08/03/11 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on June 22, 2011


Public Storage - PSA - close: 111.69 change: -0.65

Stop Loss: 113.55
Target(s): 107.50
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: Yes , see below

Company Description

Why We Like It:
Looking at the weekly chart PSA appears to have broken down below its long-term trendline of support. On a short-term basis the oversold bounce has stalled near resistance at its 100-dma and the $113.00 level. I am suggesting small bearish put positions now with a stop loss at $113.55. We'll target a drop to $107.50. I would expect PSA to find some support at the 200-dma.

- Suggested (SMALL) Positions -

buy the July $110 PUT (PSA1116S110) current ask $1.65

Annotated Chart:

Entry on June xx at $ xx.xx
Earnings Date 08/04/11 (unconfirmed)
Average Daily Volume = 765 thousand
Listed on June 22, 2011