Add ESI Puts

A Breakdown In The Works

By Bryan Bottarelli
Monday, May 04, 2009 12:22 PM EDT
Mon, 4 May 2009 16:22:00 GMT

PLAY: Buy the ESI May 85 Puts (ENJ QQ) at or under $2.00, good for the day. Place a protective stop limit at $1.20 and a pre-determined sniper sell at $5.00.

Dear Bottarelli Research Member,

Once upon a time, online educational stocks had tremendous upside momentum. But right now, all of that upside momentum is quickly running for the exits. Just look at today’s chart of ITT Educational Services (ESI – NYSE) and you’ll see that the stock is pushing below its 200-day moving average despite a powerful market rally. This could be an early indication that a full-blown breakdown is in the works. Therefore, as a quick speculative trade, let’s add May 85 Puts on ESI now.

ESI

PLAY: Buy the ESI May 85 Puts (ENJ QQ) at or under $2.00, good for the day. Place a protective stop limit at $0.95 and a pre-determined sniper sell at $4.10.

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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