Time to Act

Add WFT Puts

By Bryan Bottarelli
Monday, March 26, 2007 10:34 AM EDT
Mon, 26 Mar 2007 14:34:00 GMT

Dear Bottarelli Research Member,

I’ll keep this email short, as I’ve outlined my trading thesis on Weatherford International (WFT – NYSE) in past alerts.

WFT

As I write, crude-oil futures are shooting past $63 a barrel Monday — hitting their highest level in more than two weeks. The reason for the increase is the continued tensions between Iran and the U.K, which is providing a short-term upside catalyst that has pushed all the major oil names higher. But today we’re seeing a different story. Despite further increases in crude prices, the oil players are now experiencing weakness — which could be the indication that a near-term pullback is now in play. Looking at the WFT chart, a clear double top formation at $47 signals that we could be looking at further downside selling pressure — so let’s quickly take advantage by adding WFT May 45 Puts to our ledger.

PLAY: Buy the WFT May 45 Puts (WFT QI) at or under $1.90, good for the day. Place a protective stop loss at $1.05.

Lock and load

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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