STLD, COP, and CMG Update

Set CMG Sell at $5.70

By Bryan Bottarelli
Tuesday, June 24, 2008 10:31 AM EDT
Tue, 24 Jun 2008 14:31:00 GMT

PLAY: Sell your CMG July 90 Puts (CMG SR) at or above $5.70, good for the day.

Dear Bottarelli Research Member,

As the Dow threatens to drop another 100 points, we’re now officially points away from re-testing the March 2008 lows. Three months ago, these levels sparked a strong market bounce point which vaulted the Blue Chips 1,200 points higher in just over a month. Will lightning strike twice, or will we break below these support levels and fall even further?

INDU

If I were to wager a guess, I’d say that we experience a bounce. After all, the March 2008 lows combined with the sizable short-interest could easily trigger a market bounce at these levels. But with the next Fed announcement scheduled for tomorrow, anything is possible. Therefore, we will refrain from entering any new trades at the current time.

After locking in gains this morning on Bunge (BG – NYSE), we’re left holding the CMG July 90 Puts (CMG SR), COP July 100 Calls (COP GT), and STLD July 40 Calls (RQL GH).All three positions remain “holds” at this time. I continue to feel that all three positions are on the verge of hands us gains, and when it’s time to sell, you’ll be the first to know.

Looking specially at your CMG July 90 Puts (CMG SR), they’ve traded as high as $5.70 today, good for an 18% gain above your $4.80 entry price.If these puts re-test these highs, let’s go ahead and lock in this gain. In fact, let’s set this pre-determined sell price now.

PLAY: Sell your CMG July 90 Puts (CMG SR) at or above $5.70, good for the day.

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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