Add SDS Calls

Re-Establish Ultra-Short Position

By Bryan Bottarelli
Wednesday, September 03, 2008 11:44 AM EDT
Wed, 3 Sep 2008 15:44:00 GMT

PLAY: Buy the SDS September 66 Calls (SDS IN) at or under $2.90, good for the day. Place a protective stoop limit at $1.60 and a pre-determined sniper sell at $3.80.

Dear Bottarelli Research Member,

After locking in profits on our CF September 135 Puts (CF UV) this morning, I’d like to re-load the downside bias of our ledger. But this time, we’ll play call options on the powerful new “ultra-short” ETF’s, which move at a rate of twice the inverse of the major market averages.

Looking specifically at the Ultra Short S&P 500 ProShares (SDS – AMEX), this instrument is up 1.24% today while the S&P 500 is down 0.70%. As you can see, this powerful vehicle is a great way to profit off any continuous downside market pressure — so let’s enter into September calls now!

SDS

PLAY: Buy the SDS September 66 Calls (SDS IN) at or under $2.90, good for the day. Place a protective stoop limit at $1.60 and a pre-determined sniper sell at $3.80.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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