A Balancing Act

Add SHLD Puts

By Bryan Bottarelli
Tuesday, September 25, 2007 11:32 AM EDT
Tue, 25 Sep 2007 15:32:00 GMT

Dear Bottarelli Research Member,

As you know, I’ve wanted to play puts on Sears Holdings Corporation (SHLD – NASDAQ) for quite some time — but I’ve been waiting for just the right moment. Now that the stock has traded at a new 52-week low, I finally believe that we’ve received the technical indicator that we’ve been waiting for. Take a look:

SHLD

Today’s bad news from fellow big-box retailers Target (TGT – NYSE) and Lowe’s (LOW – NYSE) sets a gloomy outlook over the entire retail sector, so let’s balance out our ledger by adding SHLD puts now!

PLAY: Buy the SHLD October 125 Puts (KTQ VE) at or under $5.10, good for the day. Current bid/ask spread is $4.70 to $4.90. Place a protective stop limit at $2.40.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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