New Directional Put Plays – TIF

Tiffany & Co – TIF – close: 65.93 change: -1.07

Stop Loss: 67.65
Target(s): 60.50
Current Option Gain/Loss: Unopened
Time Frame: exit prior to the late May earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this high-end retailer do not look well. The stock has been churning sideways in the $65.50 to 67.50 zone for over two weeks. Now TIF looks poised to break down from this trading range.

I am suggesting a trigger to buy puts at $65.40 with a stop loss at $67.65. Our exit target is $60.50 but we do not want to hold over the late May earnings report.

Trigger @ 65.40

– Suggested Positions –

buy the May $65 PUT (TIF1219Q65) current ask $1.37

– or –

buy the Jun $65 PUT (TIF1216R60) current ask $1.13 

Annotated Chart:

Weekly Chart:

Entry on April xx at $ xx.xx
Earnings Date 05/24/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on April 24, 2012

— The Option Specialist

You May Also Like

About the Author: The Option Specialist