Archive for January, 2007

Blue Nile downgrade

January 15, 2007

Just when shares of Blue Nile almost hit the $40 mark, it was downgraded by Citigroup. This tells me that the stock price will continue to trade between $35 and $40 until the next earnings announcement. Selling the $35 puts should be a safe trade. For the more aggressive trader, the $35/$40 short strangle looks tempting too.