Two New Puts
Add AZO and BEN Puts Now!
Dear Bottarelli Research Member,
Two bearish formations have popped up that require immediate action. First off, its’ once again time to play puts on AutoZone (AZO – NYSE). As you can see from the chart, the stock has been responding beautifully to its 200-day and 50-day moving averages — calling each one resistance and support at exactly the correct moments. On today’s chart, it appears like the AZO is experiencing resistance at the 50-day MA, which would trigger a re-test of the $113.25 low from November 12th, and possibly a move down to the $107.10 low from September 18th. Based on this analysis, let’s add AZO December puts now!
PLAY: Buy the AZO December 120 Puts (AZO XD) at or under $7.90, good for the day. Current bid/ask spread is $7.50 to $7.70. Place a protective stop limit at $4.30.
Also looking bearish is Franklin Resources (BEN – NYSE). The operator of Franklin Templeton Investments (plus other various banking, finance, and investment management services) looks to be stalling right at the $130 level. It’s no coincidence that this is the same level that has the 50-day and 200-day moving averages crossing over, making this very strong resistance. The fact that BEN is getting exhausted at this level (noted by the black tick today) signals that the next move will be back down to the $115 level, so let’s play this using December puts.
PLAY: Buy the BEN December 125 Puts (BEN XE) at or under $7.20, good for the day. Current bid/ask spread is $6.50 to $6.90. Place a protective stop limit at $4.10.
I’ll also look to balance out our ledger by adding one new call, but for now, let’s once again get positioned to the downside using AZO and BEN. More to follow,
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.
Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.
CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.
Bottarelli Research alerts contain time-sensitive information, and are published and distributed to members with urgency. Because of this, not all published materials can be adequately proofread, and an occasional spelling or grammar error may exist.
Add FXI Puts
Mid-Day Update
Take FXI Profits
Play POT Calls
Pre-Market Alert
An Aggressive Play
Take CHL Profits!
Take INFY Profits!
5 Possible “Gift Gaps”
RIMM is Rockin!
POT is Rockin Too!
Play PCU Calls
Add CHL Puts
It’s Getting Ugly
The 200-Day Test
Add AZO Puts
Take CHL Profits!
Take AZO Profits
Play ICE Puts
Take ICE Profits
Play MOS Puts
I Don’t Trust It
Cancel AAPL, Play GRMN
A Speculative GS Play
Pre-Market Alert: Lock in GS & GRMN Profits!
Two New Puts
Good Morning, Take Profits!
Two New Calls
Add PCP Puts
Add to Apple
Take JASO Profits!
A Speculative Call Play
Dooms-Day for CHL?
Take PCP Profits
Take VMW Profits!
Play EXQ Calls
A Moment of Thanks
Add LEH Puts
Play POT Calls
Watching AMZN
Take Apple Profits!
Add DO Puts
Take POT Profits!
Addressing the Rally
Add CMG Calls
Take CMG Profits!
Add MICC Calls
Another Pop
A Speculative Put Play
