Take TSO Profits!

Plus: Add SDS Calls

By Bryan Bottarelli
Monday, September 08, 2008 2:14 PM EDT
Mon, 8 Sep 2008 18:14:00 GMT

PLAY: Sell your TSO October 20 Calls (TSO JD) at or above $1.65, good for the day.

PLAY: Buy the SDS September 69 Calls (SDS IQ) at or under $1.95, good for the day. Place a protective stop limit at $1.00 and a pre-determined sniper sell at $2.90.

Dear Bottarelli Research Member,

We’ll keep things short and sweet today.

Over the course of the session, the major market averages have not shown me that they can build upon their opening-session gains. As a result, I fear that we could witness selling pressure going into tomorrow. And therefore, I’d like to make another quick play using the UltraShort S&P 500 ProShares (SDS – AMEX).

But before that, let’s go ahead and lock in profits on our TSO October 20 Calls (TSO JD). As you know, we entered these puts for $1.30 and they’ve traded as high as $1.70 today, good for a nice 31% return. As I write, they’ve just crossed the tape at $1.65, so let’s go ahead and lock in these profits now!

TSO

PLAY: Sell your TSO October 20 Calls (TSO JD) at or above $1.65, good for the day.

As you know, we’ve had a high degree of success playing both SDS calls and puts lately, so let’s extend this streak using a new SDS September call position. If the major market averages give up some of today’s gains going into the close (or going into the open of tomorrow’s trading) we’ll once again be in position to lock in a quick gainer. Here’s the play:

SDS

PLAY: Buy the SDS September 69 Calls (SDS IQ) at or under $1.95, good for the day. Place a protective stop limit at $1.00 and a pre-determined sniper sell at $2.90.

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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