A bounce is coming in ESV

ESV is a wonderfully volatile stock. It's dramatic dips are usually followed by fantastic rips! And lately, it's been getting CRUSHED!

So this morning - in anticipation for another great rip - I set up an October 48/47 put spread. I picked up a $1,060 credit on 20 contracts played.

A few reasons I like this play...

1) The $46.50 area has been solid support a few times this year - and it seems to be holding this time.

2) The company is paying a great dividend in which the CEO just confirmed their commitment to said dividend. ($3 per share annually for a 6.3% yield as of yesterday's close)

and 3) Yesterday call buying in ESV outnumbered puts 3 to 1. Additionally a HUGE number of October 52.50 calls were purchased. This means someone thinks we are due for a bounce.