Ready to Strike
Nearly All Positions At Break-Even
Dear Bottarelli Research Member,
If you thought that the volatility of 2008 was put behind you, think again!
Over the past six trading sessions, we’ve seen major market moves (ranging from 100 to 300 points), all occurring right around the critical 8,000 level on the Dow. As you can see below, this level is proving to be a major battle ground for the bulls and bears — and whoever wins out will fuel the next significant directional move.
For example, if the 8,000 level is ruptured, we’ll see a quick move down to the November low of 7,500 — which could set new 52-week lows along the way. But if the 8,000 level holds, then we could see an equally quick move up to the early January 2009 high of 9,000. So like I said in a previous alert, it’s quite reasonable to expect a 1,500-point trading range — and that’s why we’re holding an equal balance of calls and puts.
As I look over our current positions, a good majority of our plays are sitting right at break-even prices. In fact, despite the major volatility we’ve seen lately, our FLR February 40 Puts (FLR NH), HES February 60 Calls (IGG BL), AEM February 55 Calls (AEM BK), MHK February 35 Puts (MHK NV), and RTH February 70 Puts (RTH NN) are all trading right at our original entry prices. As these plays continue to move alongside their established trend lines, we’ll be in great position to lock in profits on every single play. Therefore, maintain all these plays. In particular, AEM is looking to break out as investors rush back into gold, so any further up-swing and we’ll lock in profits.
At the same time, MOS continues to cling to its 50-day moving average, so maintain your MOS February 35 Calls (MOS BG) as well.
And as always…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
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