NEW DIRECTIONAL PUT PLAYS

Wyndham Worldwide Corp. - WYN - close: 60.48 change: -0.78

Stop Loss: 61.55
Target(s): 56.00
Current Option Gain/Loss: Unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
It looks like the rally in WYN has run out of gas. This company operates in the lodging industry. They operate hotels and a large number of time-share (vacation ownership) locations. With the U.S. and global economy appearing to slow down it could put pressure on consumers and any consumer discretionary spending.

WYN had a nice rally from its November lows near $48 to $65. Unfortunately the stock has failed near $65 multiple times now and it has broken down through several key moving averages. Now WYN is about to breakdown under the $60.00 mark.

I am suggesting a trigger to buy puts at $59.75. If triggered our target is $56.00. Nimble traders could aim for the simple or exponential 200-dma instead.

FYI: The Point & Figure chart for WYN is bearish with a $54 target.

Trigger @ 59.75

- Suggested Positions -

buy the May $60 PUT (WYN1318Q60) current ask $1.15

Annotated Chart:

Entry on April -- at $---.--
Average Daily Volume = 1.4 million
Listed on April 29 2013