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Today we are applying a Bear Put on AMP.

Analysis:

AMP is trading at $1.90.

AMP is trading in a strong downtrend and has broken support today, breaking the pennant pattern it had been trading in since its lows in $1.60. This provides good bearish entry signals. There is plenty of room to the next support, and the increased selling volume we saw today presents conviction in the sell off.

A Bear Put is suitable because often AMP can track sidewards and/or drift for good periods of time. With a Bear Put, time decay can be positive, which means not only do you profit from sidewards movement, but you have the flexibility to wait for the fall.