NEW DIRECTIONAL PUT PLAYS
F5 Networks - FFIV - close: 89.03 change: -1.92
Stop Loss: 91.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
FFIV is in the networking technology industry. The tech sector has been underperforming most of the market. It looks like the oversold bounce in FFIV is already starting to roll over. FFIV's trend is bearish and the stock could be headed for the $85 level or its 2012 lows (near $81.50).
I am suggesting bearish put positions now, at current levels, with a stop loss at $91.75. More conservative traders may want to wait for a drop below the March 18th low of $87.97 as an alternative entry point. Our short-term target is $85.25. More aggressive traders could aim lower.
- Suggested Positions -
buy the Apr $85 PUT (FFIV1320P85) current ask $1.44
Entry on March -- at $---.--
Average Daily Volume = 1.5 million
Listed on March 21, 2012