Time to Snipe SHLD As Well

Play February Puts Now

By Bryan Bottarelli
Thursday, January 24, 2008 2:49 PM EST
Thu, 24 Jan 2008 19:49:00 GMT

PLAY: Buy the SHLD February 100 Puts (KTQ NT) at or under $5.00, good for the day.

Dear Bottarelli Research Member,

In an effort to not be exposed to aggressively to the upside, I’d like to finish off the day by taking a downside put play on Sears Holdings Corporation (SHLD – NASDAQ).As I’ve mentioned before, SHLD has put in a strong upside move lately, but I now think the stock has gotten ahead of itself. As you can see below, the shares have bounced up to their 50-day moving average — but now they’re experiencing selling pressure. This tells me that the 50-day MA remains a level of resistance, not support, and this warrants a quick sniper play to the downside. So enough talk, here’s the play:

SHLD

PLAY: Buy the SHLD February 100 Puts (KTQ NT) at or under $5.00, good for the day. Sniper sell your puts the moment they hit 15% to 20% above your entry price, and place a protective stop limit at $2.30.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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