NEW DIRECTIONAL PUT PLAYS

CommVault Systems - CVLT - close: 64.16 change: -0.60

Stop Loss: 66.75
Target(s): 60.15
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CVLT is in the technology sector. The company provides data and information management software. The company reported earnings last week and beat Wall Street's estimates on both the top and bottom line. A cautious outlook sparked the sell-off in shares. Unfortunately for shareholders the oversold bounce has reversed. The stock continued to underperform the market today with a -0.9% decline and set a new one-year closing low.

I am suggesting put positions now at current levels. More conservative traders may want to wait for a new drop under today's low (62.94) as their entry point to buy puts but you'll want to modify your stop and target. We will aim for $60.15 because the $60.00 level could be support. More aggressive investors may want to aim lower since the Point & Figure chart for CVLT is bearish with a $48.00 target.

- Suggested Positions -

Buy the MAR $60 PUT (CVLT1422o60) current ask $1.90

Annotated Chart:

Weekly Chart:

Entry on February -- at $---.--
Average Daily Volume = 1.1 million
Listed on February 04, 2014


McDonald's Corp. - MCD - close: 93.09 change: +0.07

Stop Loss: 94.05
Target(s): 88.00
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Fast food restaurant titan MCD has been struggling since the stock peaked by in 2013. Shares working on a bearish pattern of lower highs and lower lows. Investors were not impressed with the company's earnings report a couple of weeks ago. What has many worried is the slowing same-store sales growth. In the U.S. MCD's same-store sales were down -1.4%.

Shares did not really participate in the market's widespread bounce today and that doesn't bode well for the stock. Today's low was $92.59. I am suggesting a trigger to buy puts at $92.50. If triggered our multi-week target is $88.00. However, I will warn you that the $90.00 level is potential round-number support.

FYI: The Point & Figure chart for MCD is bearish with an $85 target.

Trigger @ 92.50

- Suggested Positions -

Buy the APR $90 PUT (MCD1419P90) current ask $1.40

Annotated Chart:

Weekly Chart:

Entry on February -- at $---.--
Average Daily Volume = 5.9 million
Listed on February 04, 2014