Reasoning:
1) Technical indicators are showing buy signals and the recent trend has been in a slight correction/consolidation.
2) Support at about 20 day EMA and this is a stock I would not mind owning shares of. Earnings is coming up on expiration day.
Expectation is for continued bullish movement, with bullish long term expectations based on fundamentals.
Entry Point:
Jul ’07 BULL PUT SPREAD for a NET CREDIT of $1.10 @ strikes 85/80.
Exit Points:
Primary Exit (PE): Let options expire worthless. May need to close short leg of trade before day of earnings if profitable to avoid losing profits.
Secondary Exit (SE):
Bearish: Add or roll long put in preparation to take assignment for collar.
Posted by calendarguy 