AUTOZONE (AZO) PUT Buyers Finally Looking Smart

Just an amazing run-up the last few years for AZO. It has been impervious to downside, until now.

Almost anyone who fought this chart by going short, or buying puts, save for a few brief pull backs, has lost. Today the remaining bearish traders on AZO finally hit paydirt.

Trading out of the money stock options, you can be a loser and still win. Had you traded AZO puts 5 times for a loss, today's action would have made up for your losses and still left you with a large profit. In baseball where you are paid to fail 70% of the time, you would be released if you consistently went 1 for 5. With stock options that one hit could make your year, or your life.

The AZO $380 puts went from $.60 to $16.60 today. That's $600 into $16,600. If you ask me it was well worth the wait.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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