Add KSS Puts

Another Downside Mover

By Bryan Bottarelli
Tuesday, August 11, 2009 10:42 AM EDT
Tue, 11 Aug 2009 14:42:00 GMT

PLAY: Buy the KSS August 50 Puts (KSS TJ) at or under $0.95, good for the day. Place a protective stop limit at $0.50 and a sniper sell at $1.90.

Dear Bottarelli Research Member,

In addition to our three new plays on NTES, WYNN, and GS, I’d like to add one more cheap yet super-powerful put position on Kohl’s (KSS – NYSE).

KSS

As I outlined yesterday, KSS had a strong upside run, but the latest indicators show that the momentum is now waning. As you can see above, the stock is now giving back some of it’s recent upside move, which could easily send the stock back down between $48.00 and $50.00 per share. This could lead to a very interesting opportunity on the KSS August 50 Puts (KSS TJ), currently trading for less than $1.00 per contract ($0.90 to $0.95 as I write). Let’s add these cheap puts to our ledger in anticipation of a further downside push on KSS. If we time it correctly, we could have a strong winner on our hands. Here’s the play…

PLAY: Buy the KSS August 50 Puts (KSS TJ) at or under $0.95, good for the day. Place a protective stop limit at $0.50 and a sniper sell at $1.90.

And as always…

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 August 2009