Take HIG Profits

Lock in 17% Gainer

By Bryan Bottarelli
Wednesday, October 22, 2008 11:09 AM EDT
Wed, 22 Oct 2008 15:09:00 GMT

PLAY: Sell your HIG November 30 Puts (HIG WZ) at or above $6.40, good for the day.

PLAY: Sell your DIA November 90 Puts (DAV WL) at or above $7.35, good for the day.

Dear Bottarelli Research Member,

Since sending you your last alert, the Dow moved lower by 390 points — only to absorb some of that drop. It’s currently down 270. As a result of these intra-day moves, your DIA November 90 Puts (DAV WL) have traded as high as $7.50, good for a 25% gainer. For the rest of the day, let’s try to maximize our profits by placing a sell order above the current bid/ask spread and see if the floor traders give us a fill. If our prices get filled, we’ll lock in the gains. If not, we’ll hold these puts into tomorrow. Here’s the trade:

PLAY: Sell your DIA November 90 Puts (DAV WL) at or above $7.35, good for the day.

At the same time, shares of HIG continue falling, so I’d like to lock in our profits now. The current bid/ask spread on the HIG November 30 Puts (HIG WZ) is $6.20 to $6.60. Let’s set our sell order at $6.40, good for the day, and see if the floor traders take it.

PLAY: Sell your HIG November 30 Puts (HIG WZ) at or above $6.40, good for the day.

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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