Add BSC Puts

Play Another Down-Stroke

By Bryan Bottarelli
Wednesday, February 06, 2008 2:25 PM EST
Wed, 6 Feb 2008 19:25:00 GMT

PLAY: Buy the BSC February 80 Puts (BVD NP) at or under $2.50, good for the day.

Dear Bottarelli Research Member,

Based on the market’s inability to sustain any upside gains, I’d like to once again add a downside put to our ledger. And similar to our recent play on Lehman Brothers (LEH – NYSE), I’m finding a similar downside chart indication in shares of Bear Sterns (BSC – NYSE).As you can see below, the stock has just failed at its 50-day moving average, which signals that a re-test of its lows under the $70.00 are in the cards. Therefore, let’s add a cheap February put to our ledger and snipe any quick profits that come our way. Here’s the trade:

BSC

PLAY: Buy the BSC February 80 Puts (BVD NP) at or under $2.50, good for the day. Place a protective stop limit at $1.20.

In other news, word is now circulating that the Justice Department’s exchange-related news from this morning (which has now pushed shares of CME down over $80.00!) will not have any impact on the business operations of ICE. Therefore, we could have a really nice call buying opportunity coming soon, so be ready to strike should the right opportunity present itself. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

© 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.


Other Options Alerts From February 2008