<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/d2e1b502-c280-456a-9b58-de1208ee7462/EBEAAFF5-720F-475A-AD66-EC14D2441485/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.bloggingstocks.com/2007/12/07/smith-and-wesson-swhc-slashes-forecast-again/" href="http://www.bloggingstocks.com/2007/12/07/smith-and-wesson-swhc-slashes-forecast-again/" style="font-size: 11px;">www.bloggingstocks.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.bloggingstocks.com/2007/12/07/smith-and-wesson-swhc-slashes-forecast-again/"><H2><A rel="bookmark" href="http://www.bloggingstocks.com/2007/12/07/smith-and-wesson-swhc-slashes-forecast-again/">Smith & Wesson (SWHC) slashes forecast again</A></H2></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.bloggingstocks.com/2007/12/07/smith-and-wesson-swhc-slashes-forecast-again/"><DIV>For a bearish hedged play on this stock, I would consider a June <A target="_blank" href="http://www.iotogo.com/HSCS">bear-call credit spread</A> above the $10 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in 6 and a half months as long as SWHC is below $10 at June expiration. Smith & Wesson would have to rise by more than 40% before we would start to lose money. </DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.bloggingstocks.com/2007/12/07/smith-and-wesson-swhc-slashes-forecast-again/"><DIV>SWHC has been above $10 as recently as yesterday, but has fallen sharply this morning and shown resistance around $10.10 over the past few weeks. This trade could be risky if the stock bounces back strongly, but with drops like today's and the one in October, investors will probably be cautious with this stock for the coming months. </DIV></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/EBEAAFF5-720F-475A-AD66-EC14D2441485/blog/" title="blog or email this clip"><img src="http://content9.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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