Put Sale in HRS
- stevenplace
- March 31st, 2009
The tape I’ve been seeing is great for daytrading– a whole lot of chop going around as the market is racked with indecision on what surprise will come next: either from economic data or government action. So instead of sitting there with sweaty palms watching your P/L oscillate small percentages, take a break and check out a potential play. As always, do your own DD and manage risk accordingly.
The stock: HRS. Played this one short all through February and it’s come down into support from the capitulative low from November. I’ve mentioned this play during my IWO happy hour and I think the play still holds. Here’s the chart and the trade:
HRS 2 Year Daily
SELL -1 HRS 100 MAY 09 25 PUT @.90 LMT or better
From a risk/reward perspective, I really like this play. You’ve got a 2/3 odds of success, and you’ll make money provided HRS stays above 24-ish. Getting into the play *now* isn’t probably the best bet; I’d wait for a further pullback to get you a better expectancy.
If you like this play but are new to options, check out my video product: Options Bootcamp. It goes beyond the basics and shows the true nature of options. You can get it here.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Tickers: hrs
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