Add SDS Calls

Protect Against More Downside

By Bryan Bottarelli
Wednesday, July 23, 2008 12:27 PM EDT
Wed, 23 Jul 2008 16:27:00 GMT

PLAY: Buy the SDS August 70 Calls (SDS HR) at or under $1.50, good for the day. Place a protective stop limit at $0.90 and a pre-determined sniper sell at $2.40.

Dear Bottarelli Research Member,

We’ve enjoyed a high degree of success playing calls on the UltraShort S&P 500 ProShares (SDS – AMEX), and now I feel it’s smart to once again play calls for a pending up-move.

SDS

The S&P 500, which is heavily-weighted to the financial sector, has been rallying lately, but it appears like this upside could now be giving out. Therefore, let’s add August calls on SDS to profit off any forthcoming pullback. Here’s the play:

PLAY: Buy the SDS August 70 Calls (SDS HR) at or under $1.50, good for the day. Place a protective stop limit at $0.90 and a pre-determined sniper sell at $2.40.

Also, maintain your DRYS August 80 Calls (DQR HP) for more upside. And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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