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Petsmart (PETM) Hold these positions till price moves above $28 or below $22. The put/call ratio moved higher today, up 500, some big moves are possibly coming in the next 9 days. Still showing a net loss of $1100 out of $1650.
Jan 2, 2006 Petsmart (PETM): Buy long 5 Jan $25 calls and Buy Long 10 Jan $22.50 puts for a total of $1687. The earnings report generated some excitement; however the high price on the calls was reached quickly with the calls going for $2.50 to $3.00. Any good news, buyouts announced on this stock and prices will be profitable on the call options above $30.00 with short covering above the red signal line. Any negative news, the stock will be profitable below $20.00, since I choose to buy 10 puts. So far, prices have tried to fill the big gap created on 8-25-2005 with high volume. Petsmart could easily fall below the Oct. lows at $20.00. Keep an alert of the stock if higher than $27 there could be a short squeeze crossing red signal line.
This stock has reached a new intermediate high of $27 with a huge volume spike on 3-02-06 Possible short squeeze play with the bounce as mentioned in previous post.
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