Add APA Calls

*But Only on a Dip Under $4.00

By Bryan Bottarelli
Thursday, May 01, 2008 2:17 PM EDT
Thu, 1 May 2008 18:17:00 GMT

Dear Bottarelli Research Member,

As I mentioned earlier today, I’d like to make a quick “snap-back” trade in APA. Over the last hour, shares have touched their 50-day moving average and subsequently bounced higher. While we could see some additional selling pressure headed into the close, I think we have an opportunity to pick up the APA May 125 Calls (APA EV) for a very cheap price. Currently trading between $4.20 and $4.30 per contract, let’s try to pick them up if they dip under $4.00 and play a snap-back move into next week. If these calls don’t dip under $4.00, then cancel the trade and we’ll revisit it at a later time. But if we do witness another sell-off into the close, let’s pick them up.

APA

PLAY: Buy the APA May 125 Calls (APA EV) if they dip below $4.00, good for the day. If you are able to enter them, place a protective stop limit at $2.00 but do not place a pre-determined sniper sell. I will manage the sell advice via our daily trading alerts.

Aside from this, I don’t see any other trading opportunities that place the odds for success in our favor. I can’t remember a market situation where all of the major market indices were in rally mode without the support of the top momentum sectors, but that’s exactly the case today. Therefore, I’d like to maintain a light trading ledger until we get a better handle on these movements. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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