NEW DIRECTIONAL PUT PLAYS
United Technologies - UTX - close 65.21 change -0.18 stop 67.61 or 69.11
United Technologies Corporation (UTC) provides high technology products and services to the building systems and aerospace industries. It operates in six segments: Otis, Carrier, UTC Fire & Security, Pratt & Whitney, Hamilton Sundstrand and Sikorsky.
Target(s): 63.25, 62.15, 61.10
Key Support/Resistance Areas: To follow
Time Frame: 1 to 2 weeks
Why We We Like It:
A strengthening US dollar is bad for multinational companies who derive income from abroad. After a sell-off in the dollar over the past couple of months it looks poised to break out higher and UTX looks poised to break down lower. The plan is to short UTX if it breaks down to $64.50 but I would also suggest shorting UTX if it trades up to close the gap from 8/24 at $67.00. If we get filled at the higher price our stop will be $69.11. If we get filled at the lower price our stop will $67.61.
Suggested Position: Buy October $65.00 PUT, current ask $2.49
Entry on August xx
Earnings: 10/20/10 (unconfirmed)
Average Daily Volume: 4.4 million
Listed on August 31, 2010