Add WHR Puts

Play a Quick Downside Move

By Bryan Bottarelli
Wednesday, July 30, 2008 12:27 PM EDT
Wed, 30 Jul 2008 16:27:00 GMT

PLAY: Buy the WHR August 75 Puts (WHR TO) at or under $2.20, good for the day. Place a protective stop limit at $1.20 and a pre-determined sniper sell at $3.10.

Dear Bottarelli Research Member,

Judging from the chart below, I think it’s safe to say that we have a pullback coming in shares of Whirlpool (WHR – NYSE).

WHR

As you can see, the stock has recently enjoyed a rather strong upside move that pushed the shares from $60.00 up to current levels at $76.78. But now, WHR is experiencing resistance right at the 200-day moving average, and this tells me that the upside run is coming to an end. In fact, I wouldn’t be surprised to see profit-taking push the stock down to the un-filled gap under the $70.00 level, so let’s profit off this move using August puts now.

PLAY: Buy the WHR August 75 Puts (WHR TO) at or under $2.20, good for the day. Place a protective stop limit at $1.20 and a pre-determined sniper sell at $3.10.

At the same time, maintain your SDS August 65 Calls (SDS HM), BEN August 100 Puts (BEN TT), LAMR August 35 Puts (LJQ TG), and GENZ August 75 Calls (GAA HO), as the charts continue to indicate that we’re positioned in the right direction for each on these positions. And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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