NEW DIRECTIONAL PUT PLAYS
Cubic Corp - CUB - close: 40.90 change: -0.51
Stop Loss: 41.60
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings in early May
New Positions: Yes, see below
Why We Like It:
CUB is in the technology sector. One of their main customers is the U.S. military. The stock has been consistently underperforming the broader market and shares just fell to new 52-week lows today on another analyst downgrade.
We do se e potential support at the $40.00 mark so I am suggesting a trigger to buy puts at $39.90.
We want to keep our position size small to limit our risk. Shares of CUB do not trade with a lot of daily volume and that could make the stock prone to more volatility.
If triggered at $39.90 our target is $37.15 near its 2011 lows.
Trigger @ 39.90 *Small Positions*
- Suggested Positions -
buy the Jul $40 PUT (CUB1320S40) current ask $1.75
Entry on April -- at $---.--
Average Daily Volume = 112 thousand
Listed on April 22 2013