NEW DIRECTIONAL PUT PLAYS
Eastman Chemical - EMN - close: 69.73 change: -1.06
Stop Loss: 72.05
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
It looks like the rally in EMN ran out of fuel a couple of weeks ago. Since then the stock has been volatile but shares are developing a bearish trend of lower highs with the bounces failing at the simple 10-dma. There is a good chance that EMN corrects toward its 100-dma near $64.50 or even toward the $62-60 zone.
I am suggesting small bearish positions now, at the open tomorrow morning, with a target of $65.25. We will set our initial stop loss at $72.05. More conservative traders may want to use a stop loss closer to today's or yesterday's highs (71.22 or 71.34, respectively).
- Suggested Positions -
buy the Apr $67.50 PUT (EMN1320p67.5) current ask $1.90
Entry on March 01 at $---.--
Average Daily Volume = 1.8 million
Listed on February 28, 2012