A Quick Put Play

Add WB Puts

By Bryan Bottarelli
Thursday, August 07, 2008 2:50 PM EDT
Thu, 7 Aug 2008 18:50:00 GMT

PLAY: Buy the WB August 19 Puts (WB TV) at or under $2.20, good for the day. Place a protective stop limit at $1.40 and pre-determined sniper sell at $3.00.

Dear Bottarelli Research Member,

After an upside run that took shares of Wachovia (WB – NYSE) from a low under $10.00 to a high just under $20.00, my read of the current chart indicates that the upside momentum has now run it course. Therefore, shares of the North Carolina-based bank appear set to fall back down into the $12.00 to $15.00 range.

WB

To profit off this move, I’d like to establish a new position in the August 19 Puts. Currently trading for $2.10, a move under the 50-day moving average could produce a powerful winner, so let’s add these puts now!

PLAY: Buy the WB August 19 Puts (WB TV) at or under $2.20, good for the day. Place a protective stop limit at $1.40 and pre-determined sniper sell at $3.00.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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