PLAY: Buy the SODA November 30 Calls (O:SODA 11K30.00) at or under $4.90 (or best price), good for the day. Place a protective stop limit at $2.80 and a pre-determined sniper sell at $7.70.
Dear Bottarelli Research Member,
As the markets continue to fall, my staff and I get the sense that many of our favorite high-beta names are now primed for a strong snap-back rally. But the timing of this move is all dependent on the direction of the major market indices. For example, it’s difficult for NFLX, AAPL, GMCR, and all the others to put in a strong move on a day when the Dow is down 230. But, the moment the major market indices get some support, you better believe that these names are due for a big pop. In our view, the coming relief rally looks to be a strong one. Therefore, let’s combine our Apple calls with another position that’s primed for a big move, SodaStream International (SODA – NASDAQ).
One look at the SODA chart tells you all you need to know. An $80 stock in August is now below $30 here in October. That’s one heck of a pullback. But for today’s session, SODA has held the line at the $29.50 level. If we can get some stabilization, it has a lot of room to move up. Let’s get lightly positioned at these low levels using November calls to play a coming pop. Since anything is possible in this market, let’s just toe the water. But nevertheless, let’s still get positioned.
PLAY: Buy the SODA November 30 Calls (O:SODA 11K30.00) at or under $4.90 (or best price), good for the day. Place a protective stop limit at $2.80 and a pre-determined sniper sell at $7.70.
And as always…
Lock and load!
Sincerely,
