Tuesday, March 03, 2009

Buy AZO (sell puts)

Buy AZO via selling Mar 125 puts

AZO higher on earnings. People are keeping their cars longer and spending more at the Autozone stores. Company doesn't issue guidance. Support at 145, 135, and the latter would be the mental stop, currently around 152.

It is a bit scary selling puts in this stock market. The chart looks good, and the earnings look decent. The balance sheet not so much, but this is only for the 17 days until option expiration.

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