PLAY: Sell your GMCR October 85 Puts (O:GMCR 11V85.00) at market, good for the day.
PLAY: Sell your PII November 60 Puts (O:PII 11W60.00) and your PII October 62.50 Calls (O:PII 11J62.50) at market, good for the day.
Dear Bottarelli Research Member,
Good morning. After patiently waiting for the best entry price on Green Mountain (GMCR – NASDAQ), we jumped into the GMCR October 85 Puts (O:GMCR 11V85.00) for $3.95. As I write, they’ve now ticked up to $5.40. Let’s quickly take the money and run. Then, if GMCR pops and fails, we can play this game all over again.
PLAY: Sell your GMCR October 85 Puts (O:GMCR 11V85.00) at market, good for the day.
In other news, Polaris Industries (PII – NYSE) came in with something you don’t see too often. That is, they beat their numbers, raised their guidance, but then warned about 2012. The maker of snowmobiles, motorcycles, and recreational vehicles now expects a 2011 profit of $3.10 to $3.16 a share on sales growth of 30% to 32%. They had expected 25% to 32% growth earlier. But then they said that 2012 could be a tough year due to weakness in the economy. So, it looks like PII wants to have their cake and eat it too. From the early reaction, it looks like investors are seeing the uncertainty as a reason to sell. This is what we wanted to see for our PII 60/62.50 Calendar Spread. As you know, we’re holding the PII November 60 Puts (O:PII 11W60.00) and the PII October 62.50 Calls (O:PII 11J62.50) for the total price of $4.45. Right now, this combination trades above $7.00. Let’s take the money off the table now!
PLAY: Sell your PII November 60 Puts (O:PII 11W60.00) and your PII October 62.50 Calls (O:PII 11J62.50) at market, good for the day.
As always, I’ll keep you fully informed throughout the session. But until then…
Lock and load!
Sincerely,
