Friday Re-Test In Sight

Add ETR Puts

By Bryan Bottarelli
Wednesday, October 15, 2008 2:35 PM EDT
Wed, 15 Oct 2008 18:35:00 GMT

PLAY: Buy the ETR November 70 Puts (ETR WN) at or under $5.10, good for the day. Place a protective stop limit at $2.40 and a pre-determined sniper sell at $8.00.

Dear Bottarelli Research Member,

With the major market averages now down over 500 points, the euphoria over Monday’s historic gain is now completely over. A re-test of last Friday’s low appears to be the market’s next move. Therefore, I’d like to establish a new put position Entergy (ETR – NYSE).

ETR

Truth be told, I really like this company. They’re one of the top nuclear energy plays in Arkansas, Mississippi, Texas, and Louisiana. No matter who gets elected in November, I feel that expanding nuclear power will be on the political agenda. Nevertheless, today’s chart indicates that ETR could fall back under $70.00, and possibly re-test $60.00, over the next week. Therefore, let’s play this down-move using November puts. Here’s the play:

PLAY: Buy the ETR November 70 Puts (ETR WN) at or under $5.10, good for the day. Place a protective stop limit at $2.40 and a pre-determined sniper sell at $8.00.

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli
Editor, Bottarelli Research
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