NEW DIRECTIONAL PUT PLAYS

EQT Corp. - EQT - close: 46.06 change: -1.40

Stop Loss: 48.25
Target(s): 42.00-40.00
Current Option Gain/Loss: Unopened
Time Frame: up to its April 26th earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
EQT is a natural gas company. The stock has been sinking under a steady trend of lower highs for weeks. Today's drop is a breakdown under the January 2012 low. I want to see just a little more confirmation.

Use a trigger at $45.70 as an entry point to buy puts. Our target is the $42.00-40.00 zone. We'll use a stop at $48.25, just above today's high. FYI: The Point & Figure chart for EQT is bearish with a $36 target.

We want to exit prior to the April 26th earnings report.

Trigger @ 45.70

- Suggested Positions -

buy the Apr $45 PUT (EQT1221P45) current ask $0.65

- or -

buy the May $45 PUT (EQT1219P45) current ask $1.75

Annotated Chart:

Entry on April xx at $ xx.xx
Earnings Date 04/26/12 (confirmed)
Average Daily Volume = 1.4 million
Listed on April 11, 2012


Freeport-McMoRan - FCX - close: 35.78 change: -0.53

Stop Loss: 38.25
Target(s): 31.50
Current Option Gain/Loss: Unopened
Time Frame: up to the April 18th earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
Gold is bouncing. Silver is flat. Copper prices are breaking down. This weakness in copper is helping push shares of FCX lower. The stock broke down to new three-month lows this afternoon while most of the market was bouncing higher instead.

I do consider this a higher-risk trade because FCX tends to be volatile. Plus, we don't have a lot of time. FCX is due to report earnings on April 18th and we do not want to hold over the report.

I am suggesting small bearish positions if FCX trades at $35.65. Our target is $31.50.

Trigger @ $35.65 (small positions)

- Suggested Positions -

buy the Apr $35 PUT (FCX1221P35) current ask $0.70

Annotated Chart:

Entry on April xx at $ xx.xx
Earnings Date 04/18/12 (unconfirmed)
Average Daily Volume = 18.7 million
Listed on April 11, 2012