NEW DIRECTIONAL PUT PLAYS

Panera Bread - PNRA - close: 155.00 change: -2.61

Stop Loss: 158.05
Target(s): 141.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
I am a big fan of PNRA's product but the long-term up trend is in serious danger. The stock has been churning sideways in the $155-170 zone for months. Now PNRA is on the verge of breaking down below major support at $155 and its 300-dma.

I am suggesting a trigger to buy puts at $154.00. If triggered our target is $141.00.

Trigger @ 154.00

- Suggested Positions -

buy the Mar $150 PUT (PNRA1316o150) current ask $2.10

Annotated Chart:

Entry on February -- at $---.--
Average Daily Volume = 731 thousand
Listed on February 20, 2012


Varian Medical Sys. - VAR - close: 69.90 change: -0.79

Stop Loss: 71.00
Target(s): 66.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
VAR had rallied to all-time highs in January this year. The stock was struggling with resistance in the $75-76 zone and then they reported earnings. Management issued an earnings warning for the next quarter. The was an oversold bounce following the post-earnings spike down but since then investors have been selling into strength. VAR now has a bearish pattern of lower highs.

Yesterday's low was $69.66. I am suggesting a trigger to buy puts at $69.50. If triggered our target is the $66.00 level. More aggressive traders could aim for $65.00 or maybe the 200-dma near $64.00.

Trigger @ 69.50

- Suggested Positions -

buy the Mar $70 PUT (VAR1316o70) current ask $1.60

Annotated Chart:

Entry on February -- at $---.--
Average Daily Volume = 874 thousand
Listed on February 20, 2012