NEW DIRECTIONAL PUT PLAYS

Citrix Systems - CTXS - close: 67.61 change: -2.84

Stop Loss: 70.05
Target(s): 62.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings in late October
New Positions: Yes, see below

Company Description

Why We Like It:
CTXS is in the business software and services industry. They're also part of the cloud-computing industry. Most of the analyst action on CTXS over the last few months has been bullish. That hasn't stopped shares from reversing lower with the stock market following the last FOMC meeting. The technology sector has actually been one of the stronger areas of the market but CTXS has been underperforming many of its peers.

Shares tried to bounce from technical support at the 200-dma but the bounce has already failed. Today's display of relative weakness (-4.0%) is also a breakdown below several key moving averages. I am suggesting a trigger to buy puts at $67.30. If triggered our target is $62.50. More aggressive traders could aim for the $60.00 area. The Point & Figure chart for CTXS is bearish with a $58 target.

Trigger @ 67.30

- Suggested Positions -

buy the NOV $65 PUT (CTXS1316w65) current ask $2.35

Annotated Chart:

Entry on October -- at $---.--
Average Daily Volume = 1.4 million
Listed on October 08, 2013


Raytheon Co. - RTN - close: 74.05 change: -1.17

Stop Loss: 75.25
Target(s): 70.25
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings in late October
New Positions: Yes, see below

Company Description

Why We Like It:
RTN is in the defense industry. After an incredible 2013 for the defense stocks it looks like the rally might finally be in jeopardy. Wall Street doesn't have a complete grasp on how the government shutdown might affect defense companies, many of which have had to furlough employees. Plus there is a potential risk that any grand bargain between democrats and republicans might include a reduction in defense spending.

On a short-term basis RTN has broken down through support at its 50-dma and support near $75.00. Shares have been trying to hold the $74.00 level the last three days and look poised to continue lower. The next level of major support appears to be $70.00.

I am suggesting a trigger to buy puts at $73.90. If triggered our target is $70.25.

Trigger @ 73.90

- Suggested Positions -

buy the NOV $72.50 PUT (RTN1316w72.5) current ask $1.60

Annotated Chart:

Entry on October -- at $---.--
Average Daily Volume = 1.63 million
Listed on October 08, 2013