Take Apple Profits

Lock in Gain Ahead of Bernanke

By Bryan Bottarelli
Friday, August 31, 2007 9:55 AM EDT
Fri, 31 Aug 2007 13:55:00 GMT

Dear Bottarelli Research Member,

It’s going to be a wild day.

First off, we have a trading floor that’s half empty ahead of the long 3-day weekend. Therefore, any moves today will most likely come on low volume.

Secondly, we have (what many are calling) Ben Bernanke’s most important speech as Fed chief. The combination of each of these things will most likely lead to abnormal market volatility, so let’s take the safe route here and take profits on our Apple September 140 Calls (APV IH).We entered these calls yesterday for $4.60 and they’ve already traded as high as $6.50 today. As I write, they’re trading $5.00 and $5.30, so let’s take what the market is giving us and lock in the gain.

AAPL

PLAY: Sell your Apple September 140 Calls (APV IH) at or above $5.10, good for the day.

Leading into this afternoon, I’d also like to maintain some downside exposure, so let’s hold our put plays just in case the market sells off on any negative reaction. I’ll be out with further updates as the day progresses, but until then:

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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