When tech stocks are breaking out we should pay attention to those that are breaking down.
NEW DIRECTIONAL PUT PLAYS
SWI - Solar Winds - $18.30
SolarWinds, Inc. (SolarWinds) designs, develops, markets, sells and supports enterprise information technology (IT), management software to IT professionals in organizations of all sizes. The Companyâ€™s offerings ranges from individual software tools to software products, which solve problems faced every day by IT professionals and help to enable management of networks and IT environments. The Companyâ€™s customers include small and mid-size businesses, enterprises, and local, state and federal government entities, which have purchased one or more of the products. SolarWinds offer a portfolio of products for network management and products for IT management. It includes free tools, tools for engineers, entry-level monitoring product, and enterprise-class network and IT management products.
Why We Like It:
Solar Winds is a tech stock that is declining in a bullish tech market. The stock has been going downhill for a couple months and is on the verge of breaking critical support.
I am looking for support to break and I am recommending the June $17.50 put. I wanted to recommend the April put but we don't normally recommend options with little or no open interest. The April cycle is new and it will need a week or so to develop open interest so I went with the June. I am going to list both but the official recommendation is the June strike.
BUY PUT APR 17.50 (SWI 10P1750) open interest= zero, current ask $.85
BUY PUT JUN 17.50 (SWI 10R1750) open interest= 899, current ask $1.55
Entry on March 3rd at $ 00.00
Change since picked: + 0.00
Earnings Date 02/8/10
Average Daily Volume = 600K
Listed on March 2nd, 2010