Merrill Lynch (MER, $19.43, down $3.87) shares were down again yesterday, falling 17% and hitting a fresh 52-week low of $18.50 in the process. The stock’s previous 52-week low was $22 and Merrill opened well below that at $20.68. The bears were all over Merrill as they take aim in what could be the next investment bank to face questions about its survival. Lehman Brothers (LEH, $4.22, down $3.03) had a lot to do with Merrill’s decline yesterday but just last month Merrill had arranged to sell about $30 billion in bad debt to Lone Star Funds. Merrill is expected to write-off as much as $5 billion as a result and has already written off more than $40 billion over the last year. The stock is in a freefall because it is seen as having similar weaknesses as Lehman. Bad news for Merrill, good news for us. The September 25 puts (MOJUE, $6.00, up $3.42) were profiled at $1.30 are up 362%. The October 25 puts (MOJVE, $7.09, up $3.24) jumped 84% yesterday and were profiled at $2.56. They are up over 175%. We had set a stop of $3.00 for the September puts. You can raise it to $5.00 or close out the position today. They expire next Friday, September 19. Raise the stop from $4.00 to $6.00 for the October puts. Rick Rouse]]>