NEW DIRECTIONAL PUT PLAYS

Joy Global, Inc. - JOY - close: 48.99 change: -1.11

Stop Loss: 50.25
Target(s): 41.00
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
JOY is in the industrial goods sector. The company manufactures and services mining equipment for the coal, copper, iron, and other industries. The fact that mining stocks are getting crushed thanks to falling commodity prices is really hurting shares of JOY. Now the White House is launching a new war against the coal industry that could further hurt JOY's business.

The stock has been underperforming and shares hit new lows for the year this week. JOY did not participate in the market bounce today. It might be tempting to buy puts now but JOY does appear to have what could be significant support in the $47.50-48.00 zone dating back to summer of 2012 (see the weekly chart below). Therefore, I am suggesting a trigger to buy puts at $47.40. If triggered our multi-week target is $41.00.

Trigger @ 47.40

- Suggested Positions -

Buy the Aug $45 PUT (JOY1317T45) current ask $1.05

Annotated Chart:

Weekly Chart:

Entry on June -- at $---.--
Average Daily Volume = 2.1 million
Listed on June 26, 2013