Add UNP Puts Now

Playing a 200-Day Rupture

By Bryan Bottarelli
Tuesday, January 08, 2008 11:40 AM EST
Tue, 8 Jan 2008 16:40:00 GMT

PLAY: Buy the UNP January 120 Puts (UNP MD) at or under $5.30, good for the day. Place a protective stop limit at $2.60.

Dear Bottarelli Research Member,

Our latest trade on DECK January 130 Puts (QUK MF) moved rather quickly, so if you were not able to enter these puts, I have another put trade for you on Union Pacific (UNP – NYSE).As you can see from the chart below, UNP is just now breaking below its 200-day moving average — which is a sign of further weakness.

UNP

At the same time, competing railroad stocks like CSX (CSX – NYSE) and Burlington Northern Santa Fe (BNI – NYSE) are already trading well below their 200-day moving averages, so it looks likely that UNP will follow suit. Therefore, let’s make a quick January put play on UNP now!

BNI

PLAY: Buy the UNP January 120 Puts (UNP MD) at or under $5.30, good for the day. Place a protective stop limit at $2.60.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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