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November 8, 2012  Thu 9:16 AM CT

OSG: SEE CHART GET CHAIN FIND STRATEGIES
A bearish trader is targeting Overseas Shipholding today as it hovers just above all-time lows.

A trader bought more than 2,400 April 1.50 puts for the ask price of $0.80, according to optionMONSTER's Depth Charge system. The volume was above open interest of 1,963 contracts, indicating new activity.

The put buyer apparently believes that this stock is unlikely to survive, as the position would be profitable if the stock is below $0.70 at expiration. (See our Education section)

OSG is up 2.7 percent this morning to $1.53, but that is a gain of just $0.04. Shares of the tanker company headed into last month above $7 but hit an all-time low of $1.02 on Oct. 22 after it was hit with a lawsuit over alleged securities-law violations.
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Timing the Trade

Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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