A Sudden Fall

Add BSC Puts

By Bryan Bottarelli
Thursday, October 11, 2007 3:14 PM EDT
Thu, 11 Oct 2007 19:14:00 GMT

Dear Bottarelli Resaerch Member,

With the last 30 minutes, the markets have taken a decided turn to the downside. Near as I can tell, no single news event has triggered this downside move, aside from a healthy dose of profit-taking after setting a new historic high on the major market averages. So, let’s play right alongside this bearish momentum by making a quick put trade on Bear Stearns Companies (BSC – NYSE).

BSC

Chart-wise, it looks like BSC could easily fall $10.00 to re-test its 50-day moving average, so let’s quickly enter November puts for a fast profit opportunity. Here’s the play:

PLAY: Buy the BSC November 125 Puts (BSC WE) at or under $7.70, good for the day. Current bid/ask spread is $7.10 to $7.50. Place a protective stop limit at $3.20.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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