NEW DIRECTIONAL PUT PLAYS

Carpenter Tech. - CRS - close: 47.37 change: -0.26

Stop Loss: 50.05
Target(s): 42.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CRS manufacturers specialty metals and stainless steel products. Shares have broken down through multiple layers of support and now it appears CRS is headed for the 2012 lows.

I am suggesting new positions on Monday morning while more patient traders could wait for a bounce close to the 10-dma (currently near $49) before launching positions. Our multi-week target is $42.50. CRS can be somewhat volatile so readers may want to limit their position size to reduce risk.

- Suggested Positions -

buy the Dec $45 PUT (CRS1222x45) current ask $1.45

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 460 thousand
Listed on November 10, 2012


Vornado Realty - VNO - close: 77.32 change: -0.65

Stop Loss: 80.15
Target(s): 72.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
VNO is a REIT focused on commercial real estate. Shares currently offer a strong 3.5% dividend yield. Unfortunately, part of the fiscal cliff is higher taxes on dividends. That could help depress shares of VNO especially as we approach year end.

The stock has been struggling with a long-term trend of lower highs for months. Now VNO is breaking down under major support. I am suggesting new bearish positions at the open on Monday. Patient traders may want to consider waiting to buy puts on a bounce in the $78-79 region. Our multi-week target is $72.50.

- Suggested Positions -

buy the DEC $75 PUT (VNO1222x75) current ask $1.20

- or -

buy the 2013 Jan $75 PUT (VNO1319m75) current ask $1.70

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 1.1 million
Listed on November 10, 2012