Dear Bottarelli Research Member,
For the majority of today’s trading session, the major market averages have been fractionally lower — and very mixed. For example, the NASDAQ was the out-performer yesterday, turning in an upside day while the Dow lost 155 points. But today, the NASDAQ is the under-performer, down 1.3% compared to an ever so slight gain on the Dow. When you see varying trading patterns like this within the major market averages, it simply confirms the viewpoint that nobody has a clue what’ll happen next.
As a result, we’ll remain positioned on both sides of the market. Our two Ultra-Short plays have shown little signs of life today, with the FAZ June 8 Calls (FAY FH) reaching $0.80 and the SRS June 25 Calls (SAK FE) reaching $3.60. While still down from our entry prices, both plays continue to offer us upside abilities if/when this market rolls over. Judging from the two charts below, both plays have the potential to make huge upward price moves if we ever see a pullback. Hold.
In terms of the calls we entered yesterday, our ABT June 45 Calls (ABT FI) traded as high as $2.20, good for a 29% gain, before falling back down. The stock is working hard to establish a support level at the 50-day moving average, which would be a good sign for our calls. Hold.
With the NASDAQ acting as the under-performer today, our QID June 35 Puts (QOI RI) are trading lower. But if the recent pattern holds, and the market buys into this dip, we’ll be back in business by tomorrow. Hold.
And finally, our “short-squeeze” play on the GMCR June 90 Calls (QGM FR) is dipping today, but if the shorts decide to use this weakness to cover their positions, this could ignite the next upside push. Therefore, maintain this play as well. Hold.
Let’s see how the major market averages respond going into the final hour of trading — which could set the tone for tomorrow’s open. As always, I’ll keep you fully informed on all of our trading positions. Until then…
Lock and load!