NEW DIRECTIONAL PUT PLAYS

Equinix, Inc. - EQIX - close: 159.75 change: -3.51

Stop Loss: 162.75
Target(s): 150.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
EQIX is in the technology sector. The company provides data center and Internet-related services around the globe. The company reported earnings on October 23rd that were significantly better than Wall Street expected. Management even raised their Q4 guidance. The stock initially spiked higher on these results but traders sold the rally and EQIX resumed the longer-term trend of lower highs.

Currently EQIX is flirting with a breakdown below support at the $160.00 level. Today's low was $159.34. I am suggesting a trigger to buy puts at $159.00. If triggered our target is $150.50.

Please note that I am suggesting small positions to limit our risk. The most recent data listed short interest at 28% of the relatively small 39.0 million share float. That raises the risk of a short squeeze. FYI: The Point & Figure chart for EQIX is bearish with a $142 target.

Trigger @ 159.00 *small positions*

- Suggested Positions -

Buy the DEC $150 PUT (EQIX1322X150) current ask $3.00

Annotated Chart:

Entry on November -- at $---.--
Average Daily Volume = 1.1 million
Listed on November 07, 2013


Green Mountain Coffee Roasters - GMCR - close: 58.18 change: -1.75

Stop Loss: 61.55
Target(s): 51.50
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on Nov. 20th
New Positions: Yes, see below

Company Description

Why We Like It:
GMCR is in the consumer goods sector. The company provides over 200 varieties of coffee, tea, cocoa and other drinks in a single-serving packaging. There are lots of opinions about GMCR's future and the K-cup product line. The price action seems to be saying that investors are losing confidence. The stock peaked back in August and has been underperforming the market ever since.

The most recent bounce from support near $60.00 has failed at the $65.00 level. Now with today's market decline GMCR has broken down below support at $60.00. I am suggesting we buy put options at the opening bell tomorrow. However, I am suggesting we keep our position size small to limit our risk. The most recent data listed short interest at more than 40% of the 130 million share float. That does raise the risk of a short squeeze if the market bounces.

Our target is $51.50.

buy puts at the opening bell *small positions*

- Suggested Positions -

Buy the Dec $55 PUT (GMCR1322x55) current ask $4.35

Annotated Chart:

Entry on November -- at $---.--
Average Daily Volume = 4.7 million
Listed on November 07, 2013