NEW DIRECTIONAL PUT PLAYS

Joy Global, Inc. - JOY - close: 49.13 change: -1.46

Stop Loss: 51.05
Target(s): 45.25 and 41.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Mining names continue to suffer as the coal industry gets downgraded again. The oversold bounce in JOY is already fading. Today's low was $48.72. I am suggesting a trigger to buy puts at $48.49. If triggered we will aim for two different targets. Cautious traders can aim for $45.25. More aggressive traders can aim for $41.50. FYI: The Point & Figure chart for JOY is bearish with a $37 target.

Trigger @ 48.49

- Suggested Positions -

buy the Aug $48 PUT (JOY1218T48) current as $2.19

Annotated Chart:

Entry on July xx at $ xx.xx
Earnings Date 08/29/12 (unconfirmed)
Average Daily Volume = 2.2 million
Listed on July 16, 2012