Zeev's Turnips Patch-No Politics (ZEEV)

[Joe Stocks]

Mlsoft. MBI- Option Investor.com added MBI as a new put play. They already have ABK in play so the industry must look vulnerable to them. Here is the write up:http://www.optioninvestor.com/index.asp

MBI - MBIA Inc. - $41.49 -0.88 (-1.31 for the week)

Company Summary:

MBIA Inc., through its subsidiaries, is the world's preeminent
financial guarantor and a leading provider of specialized
financial services. MBIA provides innovative and cost-effective
products and services that meet the credit enhancement, financial
and investment needs of its public and private sector clients,
domestically and internationally. MBIA Inc.'s principal operating
subsidiary, MBIA Insurance Corporation, has a financial strength
rating of Triple-A from Moody's Investors Service, Standard &
Poor's Ratings Services, Fitch Ratings, and Rating and Investment
Information, Inc

Why We Like It:

MBIA recently released decent earnings but issued cautious
statements about its future. It was able to raise premiums
enough to offset lower investment earnings, but warned that, "The
combination of economic slowdown and capital markets volatility
continues to make short-term insurance volume forecasts
difficult." The company has expanded its business from insuring
municipal bonds to the higher risk area of insuring finance deals
involving corporate debt. In the current business environment,
financing corporate debt can lead to huge losses, as has been
shown by a number of large and regional banks, which have taken
large losses from loans to troubled industries. The stock has
been struggling recently, since topping out just over $45 on
November 4. It has rolled over, following its descending 50-dma
lower, and now appears to have given in below recent lows with
today's drop under $41.50. The stock closed on its low of the
day, indicating that there were still sellers unable to get out
of long positions. Possible exposure to student loan defaults
involving Student Finance Corp., whose bonds are insured by MBIA,
may have been behind the sell-off.

Each time the stock has bounced since July, it has reached a
lower high on the point and figure chart. It has recently rolled
over from the high of $45 on that chart, as well, and has
established a three-box reversal into a column of "O." The next
level of PnF support is down at $35 and that will be our target.
The bearish vertical count is all the way down at $24, but that
is unlikely on this move, without a reversal back up at some
point. The stock has opened just under the 50-dma, currently
$42.44, the last two days and another open just below that level
may give us additional profit potential for the short play.
Momentum traders can look for another PnF box at $41.00, however,
we will enter at the current level. Place stops at $45, which
would indicate renewed strength and an ability to finally get
through resistance.

BUY PUT DEC-45 MBI-XI OI= 415 at $5.40 SL=2.70
BUY PUT DEC-40 MBI-XH OI= 774 at $2.85 SL=1.50