Dear Bottarelli Research Member,
Shares of Zale Corp. (ZLC – NYSE) are looking worse and worse. As I write, the shares are threatening to trade below the $13.00 level, which could spark a downside push that moves the shares into the single-digits. Because of this fall, we’ve been able to lock in a strong return on our ZLC February 20 Puts (ZLC ND). As you know, we entered these puts on 10/13/2008 for $5.40. As of today, they’re hit a high of $8.20, good for a 51.85% return. If you haven’t already done so, go ahead and lock in HALF of your profits now!
PLAY: Sell HALF of your ZLC February 20 Puts (ZLC ND) at market, good for the day. Hold the remainder for more gains.
Also looking good today are the puts on AutoZone (AZO – NYSE) and Toyota Motors (TM – NYSE).A substantial failure at the $120 level signals that AZO could soon re-test the lows around $95.00. In fact, I’m sticking to my $60.00 price target. Therefore, maintain your AZO January 100 Puts (AZO MT) to capitalize on this move. In fact, let’s lower our total cost basis by adding to this position now!
PLAY: Buy more AZO January 100 Puts (AZO MT) at market, good for the day.
Toyota is also looking quite weak. A move under the $60.00 level looks inevitable, so maintain your TM January 65 Puts (TM MM) for more upside.
As you know, we’re holding these puts with an average entry price of $6.10. As of today, these puts have traded as high as $8.10, good for a 32.79% gainer. Be sure to lock in HALF of your gains at the 50% profit level.