Action Alert: Take VLO Profits
Lock in Quick Gainer: Hold Remainder
PLAY: Sell HALF of your Valero Energy January 35 Calls (VLO AG) at market, good for the day. Hold the remainder of the position for further upside.
Dear Bottarelli Research Member,
I won’t get into the habit of doing this, but we have yet another LEAPS position that has made a strong intra-day return — and I want to use this opportunity to lock in our profits.
Specifically, the Valero Energy January 35 Calls (VLO AG) that we entered this morning for $4.70 have just crossed the tape for $6.00, good for a 27.66% gainer. In a market like this, when we have quick gains like this in hand, I’d like to adjust our “Sell Half at 50%” rule and lock in these profits now.
After all, we can always add more VLO calls to our position on any forthcoming dips. So, in the spirit of opportunistic profit-taking on a well-timed entry price, let’s go ahead and lock in profits on HALF of our VLO calls now.
PLAY: Sell HALF of your Valero Energy January 35 Calls (VLO AG) at market, good for the day. Hold the remainder of the position for further upside.
Another noteworthy this week was the fact that the recent issue of Barron’s positively profiled three (3) of our current LEAPS positions.
- Lead columnist Michael Santoli was bullish on VLO, saying that “it’s possible that even sideways action in crude would help crack through the doom pervading the group.”
- Weekly Trader columnist Tiernan Ray called Companhia Vale do Rio Doce (RIO – NYSE) a “low cost beauty from Brazil,” saying that RIO is priced as if the world is going to drastically reduce its appetite for steel — and concluding that it’s one of the industry’s best bets.
- And finally, Barron’s reported ongoing rumors that Frontline (FRO – NYSE) may seek control of Overseas Shipholding Group (OSG — NYSE), saying that FRO plans to contact the company and large OSG shareholders to discuss how to boost shareholder value.
I view all three of these items as bullish events which support the reason that we’re holding our upside plays on all three companies. Therefore, maintain all of your LEAPS positions for further upside, and congrats on a nice little winner on VLO today.
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
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