Once Again, Add QID Puts

Play It Again

By Bryan Bottarelli
Thursday, October 09, 2008 10:31 AM EDT
Thu, 9 Oct 2008 14:31:00 GMT

PLAY: Buy the QID October 70 Puts (DYM VR) at or under $4.50, good for the day. Place a protective stop limit at $2.20 and a pre-determined sniper sell at $7.60.

Dear Bottarelli Research Member,

In yesterday’s alert, I noted that the UltraShort QQQ ProShares (QID – AMEX) are poised to move down to the $65.00 level. Based on this view, we played the QID October 75 Puts (DYM VW) and locked in a quick 23.68% gainer.

QID

As you know, the QID is a basket of NASDAQ 100 stocks that moves at a rate of twice the inverse of thee daily movements of companies like Google, Apple, and Microsoft. Based on today’s chart, I continue to believe that the QID has plenty of room to fall. Therefore, I’d like to once again enter into a fresh round of QID puts. But this time, we’ll trade the October 70s. Currently trading between $4.10 and $4.50, I think an aggressive “over-sold” rally on the NASDAQ 100 could hand us a quick 50% to 100% gainer. Therefore, let’s get positioned now!

PLAY: Buy the QID October 70 Puts (DYM VR) at or under $4.50, good for the day. Place a protective stop limit at $2.20 and a pre-determined sniper sell at $7.60.

Aside from that, I’d like to keep the ledger light.

In fact, in terms of our trading going into tomorrow, please check out the special note below.

*SELF-IMPOSED DAY OFF: As you know, we’re currently experiencing one of the most volatile market periods in history. But through it all, our elite group of traders have done a phenomenal job of not only surviving — but prospering — throughout all of the turmoil. In fact, since September 1st, we’ve hit winners on 24 out of 29 trades. That’s an 83% accuracy rating during the largest financial crisis since the Great Depression. So first and foremost, I’d like to officially congratulate you for being part of our trading group and experiencing these winners. But more importantly, I think it’s time for us to take a breather, collect our thoughts, and gear up for the next series of winning trades. Therefore, I’m officially self-imposing a “day off” from trading tomorrow. Yes, the markets will be open (and probably volatile once again) but we will simply sit back and observe the action without placing any new trades. Sometimes, moments like this do wonders for your mental health. And I must admit, I can’t think of a better time to adopt this practice than right now.

*FULL DISCLOSURE: On a personal note, my wife and I will be celebrating our 7th wedding anniversary this weekend, and we decided to spend the long weekend in Austin, Texas. We’ve never been there before, but we’ve heard really great things about the city. So we thought, “why not?” After all, a hot plate of Tex Mex, some great live music, and a frosty margarita sounds like a little slice of heaven right now. Therefore, there will be no trading alerts tomorrow. I want you to spend an extra day unwinding and re-charging your jets. We’ll begin trading once again on Monday morning. (Note: For any Small Caps or LEAPS members, your alerts will hit your inbox at their regularly scheduled times on Friday and Saturday.)

As for today, I’m sure there will be further alerts throughout the session. But until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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