Phelps Dodge BCS Nov 06

Phelps Dodge.

After roughly 6th attempt to cross 52wks high $102-103, PD slipped back. Based on my opinion it is forming a double repo. If true, the imminent fall is there. Just to recap, few days back PD had announced earnings as well where it had missed the expectation. The stock kept going North due to speculation play. Today the price is dropping while volume is rising.

Based on my bearish bias, I am opening a Bear Call spread for 100/105 strikes. I was filled for $1.20 credit and hence my risk reward is 1.2/3.8 i.e. 1:3 roughly






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