[Closing Put Position in Watson Pharmaceutical (WPI)]
Dear Member:
Watson Pharmaceutical (WPI) gapped up and has had a big move on very strong volume on news that there has been a removal of FDA Official action at the Davie, Florida site. The news has generated a break above the down trend that has been on the weekly chart since 2002. While the move seems to be an overreaction to the news, I own out of the money puts that expire in Aug and with the jump on the exceptional volume, I am pulling the plug and taking my lumps. I am placing an order to sell to close the Aug 25 puts (WPITE) at a limit of $0.25. If filled, I will realize a 45 cent loss.
DISCLOSURE: At the time of publication, I own the referenced puts.
Bill Kraft
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