Take DIA, CRM Profits!

Lock in Two Put Gainers: Add to UNP

By Bryan Bottarelli
Friday, February 15, 2008 9:57 AM EST
Fri, 15 Feb 2008 14:57:00 GMT

PLAY: Sniper Sell your CRM March 55 Puts (CRM OK) at or above $5.00, good for the day

PLAY: Sell your DIA March 116 Puts (DIA OL) at or above $1.30, good for the day

PLAY: Buy more UNP March 130 Calls (UNP CF) at or under $2.50, good for the day. Lower your protective stop limit to $1.30.

Dear Bottarelli Research Member,

As we expected, the markets are opening to the downside, which is benefiting both of our current put positions. The CRM March 55 Puts (CRM OK), which we entered yesterday for $4.40, have traded as high as $5.00. In my original buy alert, I set a pre-determined “sniper” sell target at $5.10, but I don’t want to quibble over ten cents. Therefore, let’s go ahead and lock in these profits now!

PLAY: Sniper Sell your CRM March 55 Puts (CRM OK) at or above $5.00, good for the day.

On the same hand, let’s also lock in profits on our DIA March 116 Puts (DIA OL). If you recall, we entered these puts on Wednesday for $1.12, and I purposely did not place a sniper sell target so that the major market indices could push lower and we could maximize our returns. But with the markets opening down today, sometimes I can’t help myself. We have a nice 2-day winner in hand, and I don’t want to mess around with any crazy market movements sparked by today’s February options expiration, so let’s go ahead and lock in these profits as well.

PLAY: Sell your DIA March 116 Puts (DIA OL) at or above $1.30, good for the day.

At the same time, continue to hold your UNP March 130 Calls (UNP CF). As I mentioned yesterday, these calls act as a buffer should we witness any sharp market bounce. In fact, since shares of UNP are finding support at their 50-day moving average, let’s lower our cost basis and add to this position now.

UNP

PLAY: Buy more UNP March 130 Calls (UNP CF) at or under $2.50, good for the day. Lower your protective stop limit to $1.30.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

© 2012 CSR Group, LLC. All rights reserved. Published in USA.

Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.

CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.

Bottarelli Research alerts contain time-sensitive information, and are published and distributed to members with urgency. Because of this, not all published materials can be adequately proofread, and an occasional spelling or grammar error may exist.


Other Options Alerts From February 2008