Take DUG Profits!

Lock in Quick Gainer

By Bryan Bottarelli
Thursday, July 03, 2008 9:41 AM EDT
Thu, 3 Jul 2008 13:41:00 GMT

Dear Bottarelli Research Member,

Tomorrow is a market holiday, and boy do we need it!

Leading up to tomorrow’s holiday, I want to be extremely nimble in this market, and that entails taking intra-day profits off the table whenever we can.

Looking specifically at our DUG July 28 Calls (DZG GB), we entered them on July 1st for $1.10 and they’ve traded as high as $1.50 today, good for a quick 36% gainer.

It’s rather ironic that DUG has ticked up even as oil prices ticked up as well. This leads me to believe that we’re not the only ones anticipating a down-move in oil prices. Looking ahead, we can always re-enter more DUG puts on any oil weakness, but for now, let’s lock in our gains!

PLAY: Sell your DUG July 28 Calls (DZG GB) at or above $1.40, good for the day.

At the same time, maintain your VIX July 25 Calls (VIX GE), as I’m sure this market’s volatility is not over. And for those traders who are still holding the BTU August 90 Calls (BTU HR), Citi upgraded the coal sector after yesterday’s brutal sell-off, so we just might witness a quick reversal after all. I’ll continue to follow this position for those still holding. And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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