Take DXD Profits!

Lock in 20% Straddle Winner

By Bryan Bottarelli
Monday, October 06, 2008 10:19 AM EDT
Mon, 6 Oct 2008 14:19:00 GMT

PLAY: Sell your DXD October 65 calls and puts at market, good for the day.

Dear Bottarelli Research Member,

Call me crazy, but the combination of the super-elevated VIX levels combined with the tremendous upside pop on the DXD sets off a warning bell in my head.

For some reason, I think we’ll see a strong rally emerge from this early-morning selling pressure, and it could happen just as everyone else is throwing in the towel.

Therefore, I’d like to officially lock in profits on our DXD straddle. As I write, the entire position is showing a 20% gain, so let’s take the safe route and sell both the calls and the puts now!

DXD

PLAY: Sell your DXD October 65 calls and puts at market, good for the day.

Once again, congrats on a down-market winner. Looking ahead, a market reversal could open up another wonderful call-buying opportunity on shares of Intercontinental Exchange (ICE – NYSE). But for now, let’s continue to wait patiently for the ideal entry price. When it’s time to act, you’ll be the first to know. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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