NEW DIRECTIONAL PUT PLAYS

Edwards Lifesciences - EW - close: 98.30 change: -1.99

Stop Loss: 100.25
Target(s): 91.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
EW has not participated in the market's recent rally. Today shares were underperforming and broke down under the $100 mark and its 50-dma. Given what looks like a bearish reversal in the last two weeks we could see EW correct lower toward support near $90.00.

I am suggesting a trigger to open bearish positions at $97.75. Our target is $91.50. FYI: The Point & Figure chart for EW is bearish with an $86 target.

Trigger @ 97.75

- Suggested Positions -

buy the Sep $95 PUT (EW1222u95) current ask $2.40

Annotated Chart:

Entry on August xx at $ xx.xx
Average Daily Volume = 950 thousand
Listed on August 9, 2012


Vornado Realty Trust - VNO - close: 80.01 change: -1.59

Stop Loss: 80.55
Target(s): 72.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
VNO is a REIT stock that has plunged sharply after reporting earnings on August 6th. Now shares are back underneath their 200-dma and testing major support in the $80-79 area.

You can tell on the weekly chart below that it almost looks like a bearish head-and-shoulders pattern. I am suggesting a trigger to open bearish positions at $78.45. Our target is $72.50 but keep in mind that the $75.00 level might be round-number support. FYI: The Point & Figure chart for VNO is bearish with a $74 target.

Trigger @ 78.45

- Suggested Positions -

buy the Sep $75 PUT (VNO1222u75) current ask $0.75

Annotated Chart:

Entry on August xx at $ xx.xx
Average Daily Volume = 943 thousand
Listed on August 9, 2012