NEW DIRECTIONAL PUT PLAYS

Allergan Inc. - AGN - close: 122.34 change: -2.23

Stop Loss: 125.20
Target(s): 116.20
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to April expiration
New Positions: Yes, see below

Company Description

Why We Like It:
AGN is in the healthcare sector. According to their website, Allergan, Inc. is a multi-specialty health care company focused on discovering, developing and commercializing innovative pharmaceuticals, biologics, medical devices and over-the-counter consumer products.

Disappointing Q1 earnings guidance in early February failed to stop the rally in AGN. Yet the upward momentum began to slow in March until it actually reversed a few days ago. AGN appears to be breaking down and today's drop closed below its simple 50-dma. If this sell-off continues AGN could see a fall toward support near $115 or worse.

Tonight we are suggesting a trigger to buy puts at $121.90. If triggered our short-term target is $116.00.

Trigger @ 121.90

- Suggested Positions -

Buy the Apr $120 PUT (AGN1419P120) current ask $3.10

Annotated Chart:

Entry on March -- at $---.--
Average Daily Volume = 2.5 million
Listed on March 26, 2014