Lock COF Profits Now

Also, What a Fall on APOL!

By Bryan Bottarelli
Friday, March 28, 2008 9:52 AM EDT
Fri, 28 Mar 2008 13:52:00 GMT

PLAY: Sell your COF April 50 Puts (COF PJ) at or above $3.50, good for the day.

Dear Bottarelli Research Member,

The markets are once again making a “soft” open this morning, with the major market averages putting in a slight gain off yesterday’s 120-point loss. To my eye, this could set the table for yet another mid-afternoon sell-off, and that supports my position of being overweight puts. But remember, the key aspect of this tactical position is locking in quick gainers as your positions move in your desired direction — and that’s why I’d like to go ahead and lock in gains in our COF April 50 Puts (COF PJ) right now. As you know, we have a $3.70 sniper sell target in place, but these puts just traded for $3.60, which represents a very nice 26.31% gain from our $2.85 entry price. Let’s go ahead and lock in these profits now!

PLAY: Sell your COF April 50 Puts (COF PJ) at or above $3.50, good for the day.

The second order of business is officially calling me “chicken.” For example, this is what I wrote yesterday about shares of APOL:

As you know, we’ve successfully played puts on APOL before, and the online education company is trading lower leading into tonight’s earnings report. While I’m not willing to officially make a new put recommendation, I would imagine that the April 55 Puts (OAQ PK) would explode to the upside if APOL reports numbers that disappoint Wall Street. So if you’re a true speculator at heart, feel free to use this information in any way you see fit.

APOL

As it turns out, APOL reported a $32 million loss last night, and the shares are trading down over 25% on the news. Crushing. In response, the April 55 Puts (OAQ PK) have traded as high as $13.10, good for a whopping 255% gain off yesterday’s prices. If anyone took these puts yesterday, it goes without saying to lock in your profits now! And if you have a chance, shoot me a quick email and tell me how you did. And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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