NEW DIRECTIONAL PUT PLAYS

Cerner Corp. - CERN - close: 71.00 change: -1.03

Stop Loss: 71.25
Target(s): 65.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The stock market is hitting new multi-year highs and yet CERN is not participating. Shares have been working their way lower. Now the stock is approaching significant support near $70.00.

I am suggesting a trigger to buy puts at $69.65. We will aim for $65.00.

Trigger @ 69.65

- Suggested Positions -

buy the Oct $70 PUT (CERN1220v70) current ask $1.75

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 1.0 million
Listed on September 17, 2012


O'Reilly Automotive - ORLY - close: 80.48 change: +0.11

Stop Loss: 81.55
Target(s): 75.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ORLY is another stock that is not participating in the market's rally. Shares have broken down and now they are testing support near $80.00. I am suggesting a trigger to buy puts at $79.75. If triggered our target is $75.10.

Trigger @ 79.75

- Suggested Positions -

buy the Oct $75 PUT (ORLY1220v75) current ask $1.05

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 1.5 million
Listed on September 17, 2012