NEW DIRECTIONAL PUT PLAYS

Time Warner Cable Inc. - TWC - close: 84.75 change: -1.69

Stop Loss: 86.30
Target(s): 80.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Cable TV giant TWC reported earnings on January 31st and investors sold the news hard. The stock plunged from $100 to close near its 200-dma near $89 following the earnings news. Since then TWC has been sliding lower. Now the correction lower is starting to pick up speed again. Shares underperformed the market with a -1.9% decline today.

The breakdown under the $85.00 level is bearish but I'd like to see a little bit more confirmation. I am suggesting we launch small bearish positions at $84.50. If triggered our short-term target is $80.25. We do want to keep our position size small because TWC is arguably already oversold.

FYI: The Point & Figure chart for TWC is bearish with a $70 target. Plus, you may also want to note that TWC has a 65-cent dividend coming up soon and the ex-dividend date is Feb. 26th.

Trigger @ 84.50 *Small Positions*

- Suggested Positions -

buy the Mar $82.50 PUT (TWC1316o82.5) current ask $1.00

Annotated Chart:

Entry on February -- at $---.--
Average Daily Volume = 3.6 million
Listed on February 21, 2012