PLAY: Buy the FDG April 50 Calls (FDG DJ) at or under $4.00, good for the day.
Dear Bottarelli Research Member,
In yet another amazing display of intra-day volatility, the Dow has trimmed a 200-point loss into a 70-point loss (as I write). If this holds up, then we’ll have the answer to the near-term support question that we asked earlier this afternoon. As you can see below, the Dow probed down to the 12,000 level and subsequently bounced. So once again, if this level holds, then the Blue Chips will have established a higher low, and this technical formation points to market upside.
Now don’t get me wrong — we need to continue playing both sides of this market. The intra-day volatility is just too strong to take one side. We currently have an equal balance of calls and puts, with our ABX April 50 Puts (ABX PJ) teamed up alongside our JASO April 15 Calls (QJP DC), and I continue to like each position. But I’d also like to go ahead and enter one more upside call on Fording Canadian Coal Trust (FDG – NYSE). The stock looks remarkably strong in the midst of today’s bearishness, so let’s add some April calls to our ledger now.
PLAY: Buy the FDG April 50 Calls (FDG DJ) at or under $4.00, good for the day. Place a sniper-sell at $4.80 and a protective stop limit at $2.30.
Lock and load!