Juniper Networks is approaching a 52 week high and breakout point at $36. IBD adds $.10 to that number to get a buy point at $36.10. They are currently ranked in the IBD 100 growth stocks and Bloomberg had a favorable article too. Over the weekend Juniper is trading at $35.88, so if the market is moving up this week, JNPR should hit that buy point. If it does so on increased volume, my plan is to enter a married put trade, probably buying the January 2010 $40 put. The put currently trades at $7.65.
That may look like expensive insurance, but here is how I look at it. Since JNPR is about $4 away from the $40 strike, that is the intrinsic value of the put. I am gauranteed a $40 sale price, so $3.65 of the put is my maximum amount at risk in the trade, which is about 8 percent. I should be able to lower even that small risk over time selling covered calls or credit spreads as the stock fluctuates.