NEW DIRECTIONAL PUT PLAYS

eBay Inc. - EBAY - close: 50.96 change: -1.03

Stop Loss: 52.05
Target(s): 45.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
EBAY has been stuck in a wide trading range for months. This time the bounce back to the top of the range has been cut short and now EBAY is on the verge of a very significant breakdown. It doesn't help that recent headlines suggest Facebook (FB) is working on a mobile payments platform. At first the market was worried that this would be competition for EBAY's very profitable PayPal business but reviews suggest it is not competition. That has not stopped the stock's decline.

EBAY is nearing major support near $50.00. I am suggesting a trigger to buy puts at $49.90. More conservative traders may want to wait for a drop below the March 2013 low of $49.55 before initiating new put positions. If we are triggered at $49.90 our first target is $45.50.

Trigger @ 49.90

- Suggested Positions -

buy the Sep $50 PUT (EBAY1321u50) current ask $0.99

- or -

buy the Oct $45 PUT (EBAY1319v45) current ask $0.49

Annotated Chart:

Weekly Chart:

Entry on August -- at $---.--
Average Daily Volume = 8.6 million
Listed on August 21, 2013


ManpowerGroup Inc. - MAN - close: 65.95 change: -1.25

Stop Loss: 67.05
Target(s): 61.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
MAN provides staffing and outsourcing services. The company reported earnings in mid July. The results were better than expected and management raised their 2013 guidance. This news helped propel shares of MAN toward their 2011 highs and major resistance near the $70.00 level. Since that test of resistance the stock has been fading lower. It looks like the correction is about to pick up speed.

We are suggesting a trigger to buy puts at $65.75. There is arguably potential short-term support at $65.00 but we are aiming for a drop to $61.00.

Trigger @ 65.75

- Suggested Positions -

buy the Sep $65 PUT (MAN1321u65) current ask $1.80

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 530 thousand
Listed on August 21, 2013