SOLD -1 FRO 100 NOV 08 40 PUT @7.90

[caption id="attachment_637" align="aligncenter" width="500" caption="Frontline Ltd."][Frontline Ltd.][][/caption]

Bullish position by shorting puts here. I am using a NOV options because I want to keep this for the short term. I would like to unload bad positions later on and scale into FRO shares since I think it's worth holding for the long term. Why? 35% dividend yield! I doubt the dividend can maintain at this level in the future, but even at half of current dividend, it's still a decent buy at this point.

Upside: Max pain at \$45 for Nov. Price-volume looks good, like we tested 20 dma \$32.2 level just now on low volume. Stock looks to be in uptrend.

Resistance: \$42

Downside: Broke 20 dma at about \$32.2 yesterday. Still at critical level around \$32. Could just as well break down from here.

Support: \$31

Bottom line: Simply a good risk/reward ratio for me to take a position here. The chance of us moving up here in the broad market is better than if we go down. I intend to hold this until at least Monday. Mental support just below support.

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