Infosys Tech. - INFY - close: 54.50 change: +0.39 stop: 56.25

Why We Like It:
The trend for INFY is still up but shares are on the verge of breaking support near its rising 50-dma. The 2009 rally off its lows has been so strong that if INFY finally does breakdown the sell-off could be significant. I'm suggesting we use small put positions and use a trigger to initiate the trade at $53.40. If triggered our first target is $50.15. Our second target is $46.50.

Suggested Options:
If INFY hits our trigger I am suggesting the February $50 puts. $55s and $52.50 strikes would also work.

BUY PUT FEB 50.00 IUN-NJ open interest=431  current ask $0.45

New option format: IUN100220P00050000 or IUN1020N50

Annotated Chart:

Entry  on   January xx at $ xx.xx <-- TRIGGER @ 53.40
Change since picked:       + 0.00
Earnings Date            04/15/10 (unconfirmed)
Average Daily Volume =        1.5 million  
Listed on   January 25, 2010