NEW DIRECTIONAL PUT PLAYS

Atlas Air Worldwide - AAWW - close: 38.73 change: -0.25

Stop Loss: 40.05
Target(s): 33.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
AAWW outsources aircraft and aviation services. This looks like a simple momentum trade for the bears. AAWW has been underperforming the market. April has seen shares break down below support near $40.00. Now after two weeks of trying to find a bottom AAWW looks poised to breakdown again. On the weekly chart AAWW has created a large (bearish) head-and-shoulders pattern.

More aggressive traders could launch bearish positions now. I am suggesting a trigger to buy puts at $38.00. If triggered our target is $33.50 but more conservative traders could exit early near $35.00 instead. FYI: The Point & Figure chart for AAWW is bearish with a $29 target.

Trigger @ 38.00

- Suggested Positions -

buy the May $37.50 PUT (AAWW1318Q37.5) current ask $1.45

Annotated Chart:

Weekly Chart:

Entry on April -- at $---.--
Average Daily Volume = 262 thousand
Listed on April 16 2013