[Opening Put Position in Comphania Siderugica Nacional SA (SID)]
Dear Member:
Comphania Siderugica Nacional SA (SID) is a Brazilian iron and steel company. After gapping up it has turned down on pretty heavy volume and looks as though it may be setting up for an island reversal. Though open interest is pretty thin, there is suspiciously large open interest in the Sept 35 puts. While I think it is a real gamble, I am going to try to take a small position in the Jun 30 puts (SIDRF) at a limit of $1.75. If the island reversal does occur there could be a good move. If I am wrong and the stock gets back over the recent high, I'll pull the plug and take my little lumps.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft
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