Managing the DIA Straddle

Tactical Advice Going Forward

By Bryan Bottarelli
Monday, September 29, 2008 3:59 PM EDT
Mon, 29 Sep 2008 19:59:00 GMT

Dear Bottarelli Research Member,

According to my calculations, our DIA Political Straddle has traded as high as 39% above our original entry price. On a day when everyone, and I mean everyone, is losing money (aside from those who are long gold or long ultra-short funds), I have to say that this is a tremendous gain for our elite group of traders. So on that note, congrats on your savvy in the midst of this turmoil.

From a tactical perspective, CNN is reporting that today’s bailout failure means that a counter-proposal will not even get presented until Thursday (at the earliest). As a result, I feel that we’ll continue to drop tomorrow morning. If we do, then I think it’s time to consider taking our DIA profits off the table.

After all, today’s precipitous down-move pretty much confirms that a bailout package needs to be passed as soon as possible. So in the coming days, we will see something get hammered out. But for now, the name of the game is managing our DIA Straddle in the best way possible. And in my view, that means locking in some put profits on follow-through selling pressure tomorrow.

When it’s time to act, you’ll be the first to know. Because like I mentioned earlier, I’m be here to guide you through this turmoil. So until tomorrow,

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 September 2008