NEW DIRECTIONAL PUT PLAYS
Wyndham Worldwide Corp. - WYN - close: 60.48 change: -0.78
Stop Loss: 61.55
Current Option Gain/Loss: Unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see below
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
Entry on April -- at $---.--
Average Daily Volume = 1.4 million
Listed on April 29 2013