Action Alert: Take HALF Profits on UYG
Lock in 50% Gainer
PLAY: Sell HALF of your UYG June 8 Calls (UUF FH) at market, good for the day. Hold the remainder.
PLAY: Buy more Toyota Motors January 65 Puts (TM MM) at market, good for the day.
Dear Bottarelli Research Member,
Looking at the chart of the Ultra Financials ProShares (UYG – AMEX), it looks like we bottom-ticked our purchase of the UYG June 8 Calls (UUF FH). As you know, we entered these calls on October 27th for $3.00. And today, they’ve traded as high as $4.60, good for a 53% return. Let’s go ahead and lock in profits on HALF of this position now — and then hold the remaining half for more upside.
PLAY: Sell HALF of your UYG June 8 Calls (UUF FH) at market, good for the day. Hold the remainder.
In other news, I want to take advantage of the dire situation in the auto industry by adding to our Toyota Motors January 65 Puts (TM MM).Yesterday, it was reported that General Motors’ October U.S. sales plunged 45%, Ford’s dropped 30%, and Toyota’s dropped 23%. This is strong evidence that the auto industry is in the worst shape in 25 years. But as you can see below, shares of Toyota have rallied alongside the rest of the market. This won’t last any longer. After all, shares of TM are hitting their head right at the 50-day moving average, which is a strong level of resistance. Let’s play a down-move by adding to our puts now.
PLAY: Buy more Toyota Motors January 65 Puts (TM MM) at market, good for the day.
Sincerely,
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