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September 27, 2012  Thu 10:11 AM CT

TWX: SEE CHART GET CHAIN FIND STRATEGIES
Time Warner is just off four-year highs reached last week, and one trader is targeting a floor beneath the stock.

A trader sold 5,950 December 38 puts for the bid price of $0.27, according to optionMONSTER's system. Open interest was 1,637 contracts at the start of the session, so this is a new position.

The put selling is a bet that TWX will remain above $38 through the December expiration, a level that has seen support going back to July. The trader is also showing a willingness to buy shares on a pullback below that level. (See our Education section)

TWX is up 1.9 percent this morning at $45.49. The media giant closed Friday at $45.90, its highest level since September 2008. Shares were below $29 a year ago and broke through resistance at $39 at the start of August.
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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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