I’ve Never Seen Anything Like It

If You’re Still Holding X Puts, Take Profits Now!

By Bryan Bottarelli
Thursday, August 09, 2007 3:49 PM EDT
Thu, 9 Aug 2007 19:49:00 GMT

Dear Bottarelli Research Member,

As you read this, the Dow has traded 300 points lower. In fact, the Dow has made triple digit moves in 11 out of the past 14 trading sessions. Unbelievable!

INDU

I’m not going to lie. I’ve been trading for quite some time — and I’ve never seen a market quite like this before. And I’m not the only one that feels this way. My inner circle of traders and contracts offers the same sentiment. Tomorrow, we could very easily witness a market bounce — only to see more selling pressure as floor traders unload their positions going into the weekend. I’ll do my very best to navigate you through it all, but as I’ve said before, that could entail stomaching larger draw-downs in some of your open positions. Case in point, take a look at our U.S. Steel August 90 Puts (X TR).

X

This position was left for dead just two days ago, but today it’s making a remarkable move. As I write, these puts are trading for $6.80 per contract. That’s a 33% gain from your $5.10 entry price, so if you’re still holding this position (and I know that many of you are) lock in your gains now!

PLAY: Sell your U.S. Steel August 90 Puts (X TR) at or above $6.70, good for the day.


In terms of PCU and ICE, both are moving lower alongside the rest of the markets today, but as evidenced by X, both positions could bounce back very quickly. As a result, I’ll continue to follow both plays. Until then, I need to go buy more Advil to get ready for another wild trading session tomorrow. As always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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