Put Options on QSII on 7/20/2012

Quality Systems (QSII) engages in the development and marketing of healthcare information systems in the United States. The company operates in four divisions: QSI Dental, NextGen, Hospital Solutions, and Revenue Cycle Management (RCM) Services. The QSI Dental division develops, markets, and supports software suites for dental organizations. It also supports various dental organizations utilizing its Software as a Service model-based financial and clinical software, as well as certain medical clients that utilize its UNIX-based medical practice management software. Shares last traded at $23.99.

We are Bearish on this name for the following reason:

1. Shares have formed a bearish "flag" as most of the hospitals and medical practices have implemendted to requirements of automating their practices as required by the Affordable Healthcare Act." It seems that best days of this stock are behind it. We expect shares to reach a new.On July 20, 2012,

TRADE: Buy 1 Aug $25 Put

Trade Buy 1 January $50.00 Call at $1.50 For a net debit of $1.50 Profit/Loss Analysis Breakeven at $51.50 Maximum profit is unbounded Maximum loss is ($150.00) at strike of $50.00 Closing Summary Sold 1 January $50.00 Call at $9.40

Position closed on 7/27/2012 at price of $9.40 with a 526.67% gain in 6 days.

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