Replies to post #36936 on Langlui's Big Board and Options Plays

[yayaa]

FWRD July 20 puts @ 2.20,G/L Gotta run
Forward Air's first-quarter 2009 results were severely hampered by lower shipping volumes. But the stock price has rallied since their last earnings announcement.

The amount of cargo shipped on its deferred-air network declined more than 20% in December. So far this year, it’s down about 20% from last year.

The economic recession is putting a big dent in demand for cargo services.

And since the steep falloff in business occurred so abruptly, management was caught by surprise. They haven’t moved very quickly to reduce the cost base.

All in all this company is facing a tough business environment and they’re not taking the steps they need to.

On a technical basis, the charts look like they are setting up for a pullback. The stock price recently tested the 200-day moving average and immediately started moving lower.

I’m expecting a quick pullback.