PLAY: Buy the WFT November 15 Calls (WFT KC) at or under $3.10, good for the day. Place a protective stop limit at $1.30 and a pre-determined sniper sell at $5.20
Dear Bottarelli Research Member,
Good morning. As we open today’s trading session, there is a sense of calm in the global markets. For whatever reason, traders and investors alike are collectively feeling like the worst is behind us — and that the actions to avert a financial meltdown are beginning to work. I’m not particularly sure what has caused this sense of calm, but it’s certainly showing up with the Dow’s 150-point advance. I’m not ready to call this the bottom, so we’ll remain quick and nimble with our trading.
And on that note, we’re seeing a snap-back move in the oil/energy sector, and this presents us with a great opportunity to play November calls on Weatherford International (WFT- NYSE).
This morning, WFT reported stellar earnings — saying that their third-quarter income rose to $370.6 million ($0.53 a share) versus $292.7 million ($0.42 a share) one year ago. In fact, their revenue set a record at $2.54 billion. Does this sound like a $16.00 stock to you? Heck no! With the stock trading at such low values, let’s add November calls now.
PLAY: Buy the WFT November 15 Calls (WFT KC) at or under $3.10, good for the day. Place a protective stop limit at $1.30 and a pre-determined sniper sell at $5.20.
At the same time, continue to hold your HIG November 30 Puts (HIG WZ). Despite a strong market open, shares of HIG are trading in the red today, which has pushed these contracts up to a high of $6.10. Hold for more gains.
I’ll be out with further updates as the trading day progresses. But until then…
Lock and load!