NEW DIRECTIONAL PUT PLAYS

Chart Industries - GTLS - close: 72.46 change: -1.33

Stop Loss: 75.55
Target(s): to be determined
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
GTLS is in the industrial goods sector. The company makes equipment for the production, storage, and end-use of hydrocarbon and industrial gases. One might think that with the U.S. experiencing a boom in natural gas production that companies like GTLS would be doing huge business. Yet many of the projects GTLS might benefit from continue to get delayed.

The stock has been sinking for months. The company lowered its earnings estimates when it reported earnings back in February this year. Their latest report in late April was big miss and management lowered their guidance again.

You can see that investors are selling the rallies and GTLS has developed a bearish trend of lower highs and lower lows.

Tonight we are suggesting bearish positions now at current levels. More conservative traders could wait for a drop under $71.00 as an alternative entry point.

FYI: The Point & Figure chart for GTLS is currently bullish but a drop below $71.00 would produce a new triple-bottom breakdown sell signal.

- Suggested Positions -

Buy the Jun $70 PUT (GTLS140621P70) current ask $2.05

*I've provided the more standardized option symbol format.
symbol-year-month-day-put-strike

Annotated Chart:

Entry on May -- at $---.--
Average Daily Volume = 652 thousand
Listed on May 15, 2014


NetSuite Inc. - N - close: 71.78 change: -1.75

Stop Loss: 73.15
Target(s): 60.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
N is in the technology sector. The company provides cloud-based enterprise resource planning software and CRM solutions. Shares of N peaked a few days before the NASDAQ composite did. Traders have been consistently selling the bounces. Now N finds itself in a bear market with a -$50 drop from its February highs and it's still falling.

N is currently hovering just above support near $70.00. Today's low was $69.48. I am suggesting a trigger to open bearish positions at $69.25. If triggered our target is $60.50. FYI: The Point & Figure chart for N is bearish with a $56 target.

Trigger @ 69.25

- Suggested Positions -

Buy the Jun $70 PUT (N140621P70) current ask $2.90

*I've provided the more standardized option symbol format.
symbol-year-month-day-put-strike

Annotated Chart:

Entry on May -- at $---.--
Average Daily Volume = 1.1 million
Listed on May 15, 2014