Last weekend I attended an options trading seminar sponsored by the Options Industry Council (OIC). I learned that most traders specialize in just one or two stocks so that they can get a feeling for it. I guess that's what's happening to me.

This short recommendation is based on CMG being overpriced. I really don't understand why CMG rallied on earnings. Growing 25% with a PE of 50 is terrible. Jim Cramer added to the momentum and CMG hit 340 (my previous target) the next day.

My target is based on CMG falling to its lower Bollinger Band, which is below 290. CMG has clearly been flaging (downward) after earnings and in the past has corrected at least 12%.

One way to play this is with a Bear Credit Spread: Sell Dec 300 Call @ 36 and Buy Dec 370 Call @ 2. The net credit is $3400 per contract.