Lock in SHLD Profits!

Grab 20% Gainer

By Bryan Bottarelli
Friday, January 25, 2008 2:01 PM EST
Fri, 25 Jan 2008 19:01:00 GMT

PLAY: Sell your SHLD February 100 Puts (KTQ NT) at or above $6.00, good for the day.

PLAY: Buy more FRE February 35 Calls (FRE BG) at or under $1.10, good for the day. Lower your protective stop limit to $0.45.

Dear Bottarelli Research Member,

Just like that, the markets are reminding us that we’re not out of the woods. As I write, the Dow is off 180 points — as shown below. But luckily, this is offering the boost we wanted on our SHLD February 100 Puts (KTQ NT).As I write, these puts have traded as high as $6.10, which officially triggers a “sniper sell” order at the 20% profit level. If you haven’t already done so, lock in your gains now!

INDU

PLAY: Sell your SHLD February 100 Puts (KTQ NT) at or above $6.00, good for the day.

In other news, I’d like to add to our Freddie Mac (FRE – NYSE) position. As I noted earlier this morning, the homebuilder stocks are blasting higher, and similar action should happen in FRE (especially if the Fed makes a strong rate cut next week). Therefore, let’s take advantage of today’s dip and add to our position now.

PLAY: Buy more FRE February 35 Calls (FRE BG) at or under $1.15, good for the day. Lower your protective stop limit to $0.45.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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