Take KSS Profits!

Plus: Watch Oil & Energy

By Bryan Bottarelli
Tuesday, August 12, 2008 9:45 AM EDT
Tue, 12 Aug 2008 13:45:00 GMT

PLAY: Sell your KSS September 50 Puts (KSS UJ) at or above $3.30, good for the day.

Dear Bottarelli Research Member,

Good morning. As we open today’s trading, oil prices are ticking back up — offering an early lift to the entire commodity sector. As I’ve mentioned on two prior occasions, I’d like us all to keep a close eye on shares of Potash of Saskatchewan (POT — NYSE). The world’s top potash company has now dipped underneath its 200-day moving average, which could set up a snap-back move to the upside if oil prices tick back up. Watch for a possible trade coming soon.

POT

In the meantime, let’s go ahead and lock in profits on our KSS September 50 Puts (KSS UJ). We entered these puts yesterday for $2.65, and at the open of trading, they crossed the tape for $3.50, good for a quick 32% gainer. As I write, these puts are now trading around $3.30, so let’s take these gains now.

PLAY: Sell your KSS September 50 Puts (KSS UJ) at or above $3.30, good for the day.

Let’s also keep a sharp eye on the top energy names, many of which have gotten aggressively sold off. Should oil prices stabilize, we could have a big opportunity for playing an upside pop in names like EOG, XTO, APA, and a host of others. As always, I’ll be carefully watching. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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