NEW DIRECTIONAL PUT PLAYS

Fluor Corp. - FLR - close: 50.00 change: -1.01

Stop Loss: 52.05
Target(s): 45.15
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
FLR is a construction company . The stock has been in a long-term decline of lower highs and lower lows since the beginning of 2011. Shares are on the verge of breaking down under support near $50.00. The late November low was $49.50. I am suggesting a trigger to buy puts at $49.35 with a stop loss at $52.05. Our target is $45.15.

We want to keep our position size small because FLR is arguably already oversold here with a drop from $56 to $50 over the last several days but that doesn't mean it can't get more oversold. FYI: The Point & Figure chart for FLR is bearish with a $43 target.

Trigger @ 49.35

- Suggested Positions - (Small Positions)

buy the 2012Jan $45 PUT (FLR1221M45) ask $1.05

Annotated Chart:

Weekly Chart:

Entry on December xx at $ xx.xx
Earnings Date 02/23/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on December 13, 2011


Monsanto Co - MON - close: 68.05 change: -0.99

Stop Loss: 71.05
Target(s): 60.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
It was only a few days ago that MON raised its earnings guidance. Yet that hasn't stopped MON from continuing to sink under a trend of lower highs. The late November low was $67.50. I am suggesting a trigger to open small bearish positions at $67.35. If triggered we'll use a wide stop loss at $71.05. Our target is $60.50. More conservative traders may want to exit near $63.00 instead. FYI: The Point & Figure chart for MON is bearish with a $60 target.

Trigger @ 67.35 (small positions)

- Suggested Positions -

buy the 2012Jan $65 PUT (MON1221M65) ask $1.93

Annotated Chart:

Entry on December xx at $ xx.xx
Earnings Date 01/05/12 (unconfirmed)
Average Daily Volume = 3.7 million
Listed on December 13, 2011