A Short Friday Wrap-Up
AIRM, WFC, & Looking to Next Week
Dear Bottarelli Research Member,
I’ll keep this short, as neither AIRM or WFC has any significant news hitting the wires today. Absent of company news, let’s quickly look at the charts to see where we stand with each position.
Starting with Well Fargo, I was a little concerned when the stock probed lower on Wednesday but then closed the day at the top of its range — followed by an up day the very next trading session. But today, WFC has once again dipped below the $35.00 level, which is putting the stock in “no-man’s land” at current levels.
Today’s chart formation makes be continue to believe that they’ll test their 50-Day moving average around the $34.50 level. You entered the WFC October 35 Puts (WFC VG) on 8/16 for $1.00 and they currently trade between $0.90 and $0.95. Continue to hold the puts, as one sharp drop should be enough to get us out for a nice gain.
Looking at Air Methods, the stock should be finding support right about now — since it has just come back down to test the crossing of the 50-Day and 200-Day moving averages. When it comes to this stock, AIRM can really pick up steam once it gets upside momentum, so I’m hoping we can weather this mini sell-off and own the calls when AIRM gets hot once again (which could come at anytime). By adding to the position yesterday, we lowered our cost basis on the AIRM September 25 Calls (UDU IE) to $0.83. Current bid/ask is $0.70 to $0.80, so let’s hold the position into next week.
In terms of strategy, I still think we’ll witness an abnormally slow week of trading leading into Labor Day weekend. So I’ll continue to keep the trading ledger light — offering only cheap and shorter-term plays until volume picks up in early September. I have a few set-ups which could be strong plays next week, so we’ll see if the early trading action supports making a recommendation.
Until then, have a nice weekend. And as always…
Lock and load!
Sincerely,
© 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.