ACTION:

Buy to open the SNE February 24 puts (SNE160219P00024000, $0.85, down $0.25) at current levels.

Dear Momentum Options Subscriber,

I have a New Trade this afternoon on a name that we have traded options on in the past. I have been both bullish and bearish on the name over the years and, this time, shares look weak, and they could get even weaker.

 

Sony (SNE, $24.62, down $0.08)

Buy to open the SNE February 24 puts (SNE160219P00024000, $0.85, down $0.25) at current levels.

I like these put options at current levels, and you can use a Limit Order up to $1.00 to get the best fill.

Shares have been in a severe downtrend since peaking at $29 in late October/early November. The 50- and 100-day moving averages are sloping lower, but there is risk to $25-$25.50 on a backtest to resistance.

These are the regular monthly options that expire on Feb. 19. I went with the February options to give the trade plenty of time to play out.

Shares have made a push towards $25 throughout the day, and I want to take advantage of today’s action to get into the put options.

 

All prices given in this update are current as of 3:25 p.m. EST.

I hereby disclose that I will be participating in the aforementioned trade(s). Every new Momentum Options recommendation is listed with the price at which I entered my own position. If the price is slightly different than my recommended entry or exit price when you receive the alert, don’t let that keep you from getting into or out of a trade. Occasionally, you might even get a better “fill” price than what is posted in the Open Trades and Closed Trades.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options