Lock in QID Profits!

Take 20% Winner Now

By Bryan Bottarelli
Wednesday, October 15, 2008 1:30 PM EDT
Wed, 15 Oct 2008 17:30:00 GMT

PLAY: Sell your QID October 65 Straddle at market, good for the day.

Dear Bottarelli Research Member,

As I write, the Dow is down 400 points — and the selling pressure was extended when Fed chief Ben Bernanke started speaking. Coincidence?

At any rate, we’re prepared for the volatility. As you know, we’re holding the QID Straddle, which is a combination of QID October 65 Calls and QID October 65 Puts. As I write, the calls have traded as high as $9.80, which single handedly puts your entire straddle position into the black. If you recall, we entered both the calls and the puts for a total cost of $8.90. And just today, the calls have hit $9.80. Combine this with the value of the $0.80 puts, and the total position is now worth $10.60, good for a 20% gainer. In this market, that’s good enough for me! Therefore, let’s lock in these gains now!

PLAY: Sell your QID October 65 Straddle at market, good for the day.

*NOTE: If you’re a risk-taker, you may consider selling the calls and holding onto the puts for a day or two. After all, a snap-back rally could really push them higher, thus locking in a profit on each side of the straddle. In my view, the safe play is locking in a gain on the total basket right now. But I certainly won’t fault you for holding onto one or two puts contracts for a pending bounce.

At any rate, congrats on another volatile-market winner. And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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