Sponsored By:

Pool Corp. (POOL)

December 10, 2008

Dear Fellow Options Traders,

Pool Corp. (POOL) does exactly what its name implies: It is a wholesale distributor of swimming pool supplies through 281 sales centers in North America and Europe. The company serves swimming pool remodelers and builders, retail swimming pool stores, swimming pool repair and service businesses, landscape construction and maintenance contractors, and golf courses.

When you think about it, people like to swim where it is hot -- places like Las Vegas, Arizona, Florida and California. Places where the foreclosure rates are the highest.

We are willing to speculate that if you are not paying your mortgage, it is unlikely you are planning on installing a new pool or taking good care of the old one. This may seem impossible to believe, but this stock is down only 15% year-to-date.

Option investors have decided to jump in with a dive that looks like a cannon ball -- 34-times the usual volume is being traded and it's almost all concentrated in the puts.

With the stock up about 35% off its lows, we recommend swimming with these option sharks. Buy the POOL April 17.50 Puts (QCLPW) for $3.80 or less.

We are buying the 17.50 strike because it is the best combination of low volatility and high delta.


Nick Atkeson and Andrew Houghton
Editors
ChangeWave Options Trader