Take ICE and WFT Profits

Lock In Two Winners!

By Bryan Bottarelli
Friday, October 03, 2008 10:43 AM EDT
Fri, 3 Oct 2008 14:43:00 GMT

PLAY: Sell your WFT January 20 Calls (WFT AD) at or above $4.40, good for the day.

PLAY: Sell your ICE October 85 Calls (ICE JQ) at or above $6.90, good for the day.

Dear Bottarelli Research Member,

As much as I’d like to hold both the WFT January 20 Calls (WFT AD) and the ICE October 85 Calls (ICE JQ), we have a situation right now (going into a critical weekend) where we have profits in both plays. As I mentioned to your earlier, I think that the bailout plan will pass. If so, we could be in for a strong (but short-lived) rally. If the bailout plan does not pass, then run for cover.

In a situation like this, it’s best to hold a straddle position, just like the DXD play that I just recommended. And nothing else. After all, I’m not willing to put your profits at risk for some unforeseen market event. In this market, we must continue to be smart and nimble. Therefore, I think the safest play right now is locking in profits on your WFT and ICE calls, and go into the weekend holding nothing but your DXD Straddle.

PLAY: Sell your WFT January 20 Calls (WFT AD) at or above $4.40, good for the day.

PLAY: Sell your ICE October 85 Calls (ICE JQ) at or above $6.90, good for the day.

*NOTE: I know that many of you want to particulate in the 500-point upside day that could come as a result of the House passing the bailout plan. If you are one of these members, then I recommend holding HALF of your WFT and ICE positions going into Monday. Of course, locking in your profits is the safest play. But if you want even more gains, then at least take some profits off the table now! And as always…

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 October 2008