NEW DIRECTIONAL PUT PLAYS

F5 Networks - FFIV - close: 83.49 change: -0.67

Stop Loss: 85.01
Target(s): 76.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
FFIV is in the technology sector. The company provides networking technology. The company reported earnings on October 23rd and beat Wall Street's estimates on both the top and bottom line. Shares rallied on the news but traders quickly sold into strength. Shares have since broken down to new relative lows. FFIV seems to be suffering with a long-term trend of lower highs and lower lows (check a weekly chart). On a short-term basis FFIV is poised to breakdown below support in the $82.50 area.

I am suggesting a trigger to buy puts at $82.00. If triggered our target is $76.00.

Trigger @ $82.00

- Suggested Positions -

Buy the DEC $80 PUT (FFIV1322X80) current ask $2.64

Annotated Chart:

Entry on October -- at $---.--
Average Daily Volume = 2.2 million
Listed on October 30, 2013


Union Pacific Corp. - UNP - close: 150.59 change: +0.02

Stop Loss: 151.55
Target(s): 141.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
UNP is in the railroad industry. The stock has been a big underperformer. It's underperforming the broader market. It's underperforming the transportation average and it's underperforming its peers in the railroads. The weakness is a bit surprising since the latest rail traffic data actually improved.

The stock has faded lower to major support near $150 and its simple 200-dma. This is also a test of its long-term trend line of higher lows (see weekly chart below). A breakdown here could be ugly. Today's low was $149.23. The June low was $148.45. I am suggesting a trigger to buy puts at $148.00. If triggered our target is $141.00.

Trigger @ 148.00

- Suggested Positions -

Buy the DEC $145 PUT (UNP1322X145) current ask $1.95

Annotated Chart:

Weekly Chart:

Entry on October -- at $---.--
Average Daily Volume = 2.7 million
Listed on October 30, 2013