DRYS Follow Up

Plus, DIA Call Sale

By Bryan Bottarelli
Wednesday, March 19, 2008 11:49 AM EDT
Wed, 19 Mar 2008 15:49:00 GMT

Dear Bottarelli Research Member,

As you probably know, the DRYS April 65 Calls (DQR DM) that we attempted to sell this morning for $5.20 moved quite fast. Therefore, the position is still open — and we’ll continue to work our $5.20 sell order for the rest of the day. I still think DRYS has some “pop” left in it, so we could get a second exit opportunity later today (or into tomorrow).

DRYS

In situations like this, where we’re attempting to lock in a quick profit at the open of trading, please understand that it’s not my intention for prices to move so quickly. I’m simply trying to get you in and out of these trades for the best possible prices. If those prices are not achievable, then you can either take a lesser price (by selling at $5.10, for example) or maintain your sell order for a possible fill later in the day. In most cases, if you are unable to exit, I will continue to follow the positions.

PLAY: Maintain your DRYS April 65 Call (DQR DM) sale at or above $5.20, good for the day.

In many cases, you will see prices hit later in the day — or the following morning. Take our CLHB April 65 Calls (QPB DM), for example. If you were unable to achieve our $4.00 sell price yesterday, then you had a second chance to exit for an even better profit this morning. Thanks to another new 52-week high for CLHB, these calls traded as high as $4.30. So if you haven’t already done so, lock in these gains now.

CLHB

Also, concerning our DIA Strangle, I’d like to close out our DIA April 125 Calls (DAW DU) at or above $2.85 per contract. As I write, these calls have traded as high as $2.99, good for a very nice 32.8% gain from our $2.25 entry price yesterday. Based on this quick return, let’s lock in these gains and then use the puts to move the entire DIA Strangle basket into profitability. For now, close out the call side and then let any forthcoming market downside increase the value of our remaining puts.

DIA

PLAY: Sell your DIA April 125 Calls (DAW DU) at or above $2.85, good for the day.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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