Position Review

All Plays Moving Our Way

By Bryan Bottarelli
Tuesday, April 15, 2008 9:56 AM EDT
Tue, 15 Apr 2008 13:56:00 GMT

Dear Bottarelli Research Member,

As you can see below, the Dow Jones Industrial Average has kicked off today’s tax deadline by showing a slight upside move at the 50-day moving average. As I mentioned yesterday, the major market averages are still stuck in a period of momentary indecision, and until this tug-of-war breaks out of the recent trading range (either up or down) it still makes sense to maintain both upside and downside exposure.

INDU

As I review our open positions, all of them (except for our LEAP puts) are trading slightly to the upside. So as a brief review, here is where we stand with each position:

ABX May 40 Calls (ABX EH): We entered these calls on 4/14/2008 for $4.25, and they hit a high today of $5.10. That’s a quick 20% return. Therefore, let’s lower our pre-determined sniper sell from $5.50 to $5.30 and lock in a 24% gain the moment these calls trade at $5.30.

SPWR May 100 Calls (QSU ET): We entered these calls on 4/11/2008 for $4.50, and they hit a high today of $4.70. Maintain this position without a pre-determined sniper sell, as SPWR could rally into their April 17th earnings announcement. When it’s time to close this position, I’ll let you know.

LEAP May 50 Puts (UAO QJ): We entered these puts on 4/10/2008 for $5.20, and they hit a high today of $5.40. Maintain your sniper sell at $6.20.

CHK May 47.5 Calls (CHK ES): We entered these calls on 4/9/2008 for $3.30 and they hit a high today of $3.43. Maintain your sniper sell at $4.20.

HON May 55 Puts (HON QK): We entered these puts on 4/14/2008 for $1.65 and they hit a high today of $1.80. Maintain your sniper-sell at $2.10.

I’m comfortable with this trading ledger for the time being — so let’s watch how the markets open today’s session before making any new plays. And if any of our pre-determined sniper sell orders trigger, be sure to take your money and run! Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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