Take MICC Profits

Plus, Maintain SHLD Puts

By Bryan Bottarelli
Thursday, September 27, 2007 11:21 AM EDT
Thu, 27 Sep 2007 15:21:00 GMT

Dear Bottarelli Research Member,

A quick look at today’s Dow chart shows a strong upside run that could be on the verge of a slight pullback. Take a look:

INDU

Although the predominant trend remains to the upside, I always want to keep you protected against a pullback. That’s why I’d like to maintain our SHLD October 125 Puts (KTQ VE). The retail sector remains very weak, and the new 52-week low registered in Sears Holdings earlier this week signals that the last two upside ticks are momentary events. The trend remains down here, so maintain your puts.

SHLD

At the same time, let’s go ahead and lock in gains on our MICC October 80 Calls (CQD JP).The stock is up again today, and your calls have traded as high as $6.60 in today’s action. As much as I feel the upside will continue, I’d like to take the safe route and lock in the gains that we have in hand. If we witness any momentary pullback, I’ll probably re-enter these calls, but for low let’s lock in our gains.

MICC

PLAY: Sell your MICC October 80 Calls (CQD JP) at or above $5.90, good for the day.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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