Take Profits

Lock in DIA Gains

By Bryan Bottarelli
Tuesday, October 17, 2006 1:13 PM EST
Tue, 17 Oct 2006 18:13:00 GMT

Dear Bottarelli Research Member,

Over the last hour, the Dow has trimmed a 90 point loss into only a 60 point loss. Although this up-tick allowed us to take profits on our PPH November 75 Calls (PPH KO), I’m now concerned that the markets could muster up some upside strength by the close of trading. Therefore, I’d like us to lock in profits on our DIA put hedges:

PLAY: Sell your DIA November 120 Put Hedges (DAW WP) at or above $1.80, good for the day.

I may be jumping the gun, as past history shows that an afternoon lull could quickly snap back and fuel a new rash of selling pressure as we near the close of today’s trading. But a bird in the hand is worth two in the bush, so let’s take the safe route and lock in our profits now. We can always re-enter the puts at a later date. Also be on the lookout for a neat little speculative play I have cooking on Google (GOOG – NASDAQ).With GOOG set to report earnings on Thursday, we could have the potential for a bit hit. I’ll have that out later toady. In the meantime,

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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