Take DUG Profits

Lock In Straddle Gains Now

By Bryan Bottarelli
Wednesday, November 12, 2008 10:00 AM EST
Wed, 12 Nov 2008 15:00:00 GMT

PLAY: Sell your DUG November 41 Calls (DUG KO) at or above $4.00, good for the day.

Dear Bottarelli Research Member,

Good morning. The major market averages are once again opening lower, and this is offering a nice boost to our ultra-short position on the UltraShort Oil & Gas Pro Shares (DUG – AMEX).

DUG

As you know, we entered the DUG November 41 Straddle by purchasing the DUG November 41 Calls (DUG KO) and the DUG November 41 Puts (DUG WO) for a total price of $9.60. As it stands today, we’ve already sold the November 41 puts for $7.00, leaving us holding the calls at a break-even price of $2.60. As of this morning, these calls have traded as high as $4.00, good for a 14.5% gain on the total straddle position. Let’s go ahead and lock in these profits now!

PLAY: Sell your DUG November 41 Calls (DUG KO) at or above $4.00, good for the day.

At the same time, continue holding your KSS December 30 Puts (KSS XF), GDX January 23 Calls (GBJ AW), and RATE December 30 Puts (QIB XF). And as always, I’ll be out with further updates as the day progresses. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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