trend trading stock, stock trading

[Entering Put Position on Cognizant Technology (CTSH)] Dear Member: Cognizant Technology Solutions Corp (CTSH) appears to be consolidating into a descending triangle and has bounced down off the downtrend line. The stock is currently trading around $30.25 and has a first downside target around $28. I am placing an order to buy to open the Jan 35 puts ((VJOMG) at a limit of $7.50. These options would be in the money about $4.75 so I would only be paying $2.50 for the time value. The current delta is about -.54 so initially, I would expect the option price to move about 54 cents for every $1 the stock moves. My initial exit if the stock moves against me would be a break above the down trend line. DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock. Sincerely, Bill Kraft
Home \| Subscribe \| All Rights Reserved \| Privacy Policy \| Advertising \| Contact Us \| Terms of Use \| Disclaimer \| Links