Add DXD Calls
Short the Pop at 7,000
PLAY: Buy the DXD March 77 Calls (DZS CI) at or under $4.60, good for the day. Place a protective stop limit at $2.50 and a pre-determined sniper sell at $6.60.
Dear Bottarelli Research Member,
Our decision to lock in gains on our PCP and QID plays was very well-timed. As of right now, we nailed the highs of the day on both positions, thus maximizing our returns at the highest possible point. Nice trading.
After executing both exit points, we’re left holding three positions: TBT April 48 Calls (TBT DV), CMG April 60 Calls (CMG DL), and AGU March 40 Calls (AGU CH). And as you can tell, these three plays offer us predominantly long exposure. Thus far, these three plays have moved in our favor today, which is a good thing. But as I’ve said before, the market’s mood swings are always crazy leading into the close of trading on Friday. As a result, it’s anyone’s guess as to how we’ll end today’s session. Therefore, it behooves us to maintain all three positions. But on the same hand, it’s also smart to reload our downside exposure.
After all, the rash of new 52-week lows makes it quite clear that the major market averages are still in deep trouble. As you can see above, today’s Dow chart nearly tapped the 7,000 level before putting in a bounce. While the 7,000 level could offer a temporary level of support, I think we’ll be talking about the high 6,000 level come next week. Therefore, let’s take advantage of this bounce by adding DXD calls.
As you can see, the DXD popped aggressively higher this morning before giving back the gains (noted by the black tick). Going into next week, we’ll probably re-test these levels. Therefore, let’s add DXD calls leading into next week.
PLAY: Buy the DXD March 77 Calls (DZS CI) at or under $4.60, good for the day. Place a protective stop limit at $2.50 and a pre-determined sniper sell at $6.60.
And as always…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.
Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.
CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.
Bottarelli Research alerts contain time-sensitive information, and are published and distributed to members with urgency. Because of this, not all published materials can be adequately proofread, and an occasional spelling or grammar error may exist.
Take FLR Profits
Add AZO & V Puts
Add to AEM Calls
Correction: Add to AEM Calls
A Dangerous Time
Take TBT Profits!
Afternoon Update
Kicking Off The Stimulus Debate
Three New Plays
Add TBT Puts
Take TBT Profits!
Markets Crumble: Take QID Profits!
Add FDX Puts
Add DUG Calls
Take AEM Profits!
Take DUG Profits!
Another Dangerous Formation
Add TBT Calls
Add UCO Calls
Take FDX Profits
Take TBT Profits!
Two New Plays
Add GS Puts
Watching QID
No Guts, No Glory
Take GS Profits!
It’s “Wait and See” Time
Add TBT Calls
Good News, Bad News
A New Low?
Take QID Profits!
Take GS Profits
One Final Trade
Add PCP Puts
Add KSS Puts
Dow Under 7,000?
Take NEM Profits!
Add CMG Calls
Add QID Calls
Add TBT Calls
Take TBT Profits!
An Aggressive Maneuver
Add TBT Calls
Take QID & PCP Profits!
Add DXD Calls
Take DXD Profits!
