Let’s Take Some Profits!

Sell eBay June 32.5 Puts

By Bryan Bottarelli
Tuesday, May 16, 2006 12:12 PM EST
Tue, 16 May 2006 17:12:00 GMT

PLAY: Sell your EBAY June 32.5 Puts (XBA RZ) at or above $2.50, good for the day.

Dear Bottarelli Research Member,

My bearish thesis on everything tech-related continues to pay off. First it was puts on Intel, then puts on Dell. Now, our puts on eBay are showing a nice profit, so it’s time to take our money off the table.

EBAY

Although we officially entered the EBAY June 32.5 Puts (XBA RZ) for $1.90, I know a lot of you got in for much lower. No matter what your entry price, we’re all showing a gain today. As I write, the puts are trading between $2.45 and $2.65 per contract, good for a gain of at least 39.5%. Let’s take the money off the table now!

PLAY: SELL YOUR EBAY JUNE 32.5 PUTS (XBA RZ) AT OR ABOVE $2.50, GOOD FOR THE DAY.

To continue my bearish tech thesis, I’ve been looking very hard at Amazon (AMZN – NASDAQ) as a possible put candidate. I’m also considering some out-dated puts on the indices to capitalize on any further downside action — combined with a very cautions approach of buying calls on the strongest stocks out there today. I’ll continue my due diligence and let you know the moment it’s time to act. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

© 2012 CSR Group, LLC. All rights reserved. Published in USA.

Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.

CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.

Bottarelli Research alerts contain time-sensitive information, and are published and distributed to members with urgency. Because of this, not all published materials can be adequately proofread, and an occasional spelling or grammar error may exist.


Other Options Alerts From May 2006