A December Rally?

Plus, Close out X Puts

By Bryan Bottarelli
Monday, December 17, 2007 9:34 AM EST
Mon, 17 Dec 2007 14:34:00 GMT

Dear Bottarelli Research Member,

It’s already mid-December and we still haven’t seen any market bullishness. As you know, December has historically been the second best month to be long, but as of today, mostly all of the major market averages are flat for the month. Does that mean we could see buying interest coming into this week? I would have to say “yes,” and that’s why I’d like to close out our U.S. Steel December 110 Puts (X XB).

As you know, we tried to sell these puts on Friday but we did not get our sell price. And now, with the markets opening weaker this morning and December expiration at the end of the week, we have to take a more conservative tactical approach when dealing with the management of our December contracts. Thee puts have traded as high as $4.70 this morning, so let’s go ahead and lock in a small gainer on this play now.

PLAY: Sell your U.S. Steel December 110 Puts (X XB) at or above $4.50, good for the day.

I’ll be out with further alerts as the day gets started, but until then.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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