Take CTRP Profits

Lock in Quick Gainer

By Bryan Bottarelli
Monday, August 18, 2008 9:59 AM EDT
Mon, 18 Aug 2008 13:59:00 GMT

PLAY: Sell your CTRP September 55 Puts (QCT UK) at or above $4.40, good for the day.

Dear Bottarelli Research Member,

Good morning. We’ve opened the session with an apprehensive price tick, as you can see below. As you read this, the Dow is in the process of deciding if the 50-day moving average will act as a level of support or a level of resistance. As you can see, ever since breaking below the 50-day moving average in early June, this level has acted as resistance. But there is a possibility of transferring this level back over to support if the major market indices can muster up a rally at these levels.

INDU

Until we get an answer, we must remain cautious and continue making quick trades. Looking at our current positions, let’s go ahead and lock in profits on our CTRP September 55 Puts (QCT UK). We entered these puts for $3.60 and they just traded as high as $4.50, good for a quick 25% gainer. Let’s lock in these profits now!

PLAY: Sell your CTRP September 55 Puts (QCT UK) at or above $4.40, good for the day.

At the same time, let’s also close off our AMZN September 90 Calls (ZQN IR). While I still like the upside potential of the AMZN chart, we need to see more upside momentum before ANZN can extend its push. Therefore, let’s close out these calls and look to re-enter upon the next upside move.

This will leave us holding the UNP September 75 Calls (UNP IO), which we entered for $5.60 and the WB September 16 Puts (WB UH), which we entered for $2.05. Maintain both positions going forward.

In terms of new trades, if the commodity rally (which is showing signs of strength this morning) can extend itself, we could have a series of nice plays in the works. As always, I’ll let you know exactly when to act. But until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

© 2012 CSR Group, LLC. All rights reserved. Published in USA.

Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.

CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.

Bottarelli Research alerts contain time-sensitive information, and are published and distributed to members with urgency. Because of this, not all published materials can be adequately proofread, and an occasional spelling or grammar error may exist.


Other Options Alerts From August 2008