Add DXD and GLD Calls

Further Protective Positioning

By Bryan Bottarelli
Wednesday, September 17, 2008 11:16 AM EDT
Wed, 17 Sep 2008 15:16:00 GMT

PLAY: Buy the DXD October 70 Calls (DXD JR) at or under $4.50, good for the day. Place a protective stop limit at $2.90 and a pre-determined sniper sell at $5.50.

PLAY: Buy the GLD October 82 Calls (GLD JD) at or under $4.30, good for the day. Place a protective stop limit at $2.50 and a pre-determined sniper sell at $5.20.

Dear Bottarelli Research Member,

The Dow is teetering at the critical 10,800 level. If this level breaks down, then lookout below.

Therefore, as a protective measure, let’s once again get positioned in a protective ultra-short position. And this time, we’ll play the Ultra Short Dow 30 ProShares (DXD – AMEX). As you can see below, yesterday’s sudden reversal was nothing more than a knee-jerk reaction to the Fed’s AIG bailout news. Therefore, I feel that the DXD will soon re-visit the highs above the $70.00 level. Let’s play this move using October calls now!

DXD

PLAY: Buy the DXD October 70 Calls (DXD JR) at or under $4.50, good for the day. Place a protective stop limit at $2.90 and a pre-determined sniper sell at $5.50.

At the same time, we’re seeing a rush of money flow into gold, evidenced by today’s $50.00 pop in the shiny metal. This is purely s “protective” play, as investors are now looking for a safe haven investment. This has been something I’ve been expecting to see for quite some time, and it now appears like gold is “in play.” Let’s get positioned to profit off a further upside momentum using the SPDR Gold Shares (GLD – NYSE).Here’s the play:

PLAY: Buy the GLD October 82 Calls (GLD JD) at or under $4.30, good for the day. Place a protective stop limit at $2.50 and a pre-determined sniper sell at $5.20.

GLD

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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