Another Oil Retreat?

Add DUG Calls

By Bryan Bottarelli
Wednesday, July 09, 2008 11:39 AM EDT
Wed, 9 Jul 2008 15:39:00 GMT

PLAY: Buy the DUG July 30 Calls (DZG GF) at or under $1.70, good for the day. Place a protective stop limit at $0.80 and a sniper sell at $2.25.

Dear Bottarelli Research Member,

Let’s go ahead and make another quick trade on the UltraShort Oil & Gas ProShares (DUG – AMEX).The rationale here is simple: Two weeks ago, news of Iran testing missiles combined with an un-changed oil inventory report would have sent oil pricing blasting to new record highs. But in today’s market, this news cannot even help oil prices sustain an early-morning upside move. As a result, I think we’ll see prices moderate and drift lower for the rest of today’s session, and this will once again offer an upside pop to shares of DUG. Let’s profit off this move using July calls. Here’s the play:

DUG

PLAY: Buy the DUG July 30 Calls (DZG GF) at or under $1.70, good for the day. Place a protective stop limit at $0.80 and a sniper sell at $2.25.

Also, the sale on our MOS July 140 Calls (MTJ GH) officially triggered at $4.90, which was ten cents below the $5.00 listed sell price. In this market, we cannot mess around pinching pennies, so as a standing rule, be sure to lock in profits no matter if prices are within 10 to 20 cents of our listed exit price. If you have yet to sell your MOS calls, lock in gains at any price now. And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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