Sony Corp (NYSE: SNE)

Sony (SNE) CEO Stringer has optimistic outlook for PS3

After hitting a one-year high of $57.92 last May, the stock hit a one-year low of $39.52 in April. SNE opened this morning at $50.81. So far today the stock has hit a low of $50.27 and a high of $50.81. As of 12:55, SNE is trading at $50.37, up 1.94 (4.0%). The chart for SNE looks bullish and steady.

Market sentiment: Bullish

From the technical chart pattern it is clear that this stock is trending higher by

• Making higher highs and higher lows.
• Forming upward pitch fork and getting support at middle pitch fork.
• Previous top has been crossed which is at 50 area, next resistance is at 56 area.

Since this stock looks bullish,it is a good time to do October bull-put credit spread below $40 range. This could give 7% return in five months as long as SNE is above $40 at October expiration.

This trade could be risky if the company's earnings (due out in late July) disappoint, but even if that happens, this position could be protected by the support the stock might find around $40, where it bottomed out in April.

DISCLOSURE: This is just for your education purpose. We are not responsible for any of your losses. Please do at your own risk.