No Traction

Add CHL Calls

By Bryan Bottarelli
Wednesday, April 15, 2009 3:10 PM EDT
Wed, 15 Apr 2009 19:10:00 GMT

PLAY: Buy the CHL May 50 Calls (CHL EJ) at or under $1.30, good for the day. Place a protective stop limit at $0.65 and a pre-determined sniper sell at $2.50.

Dear Bottarelli Research Member,

For most of today’s session, we haven’t been able to gain any sort of traction in any of our current positions. After locking in profits on our FAZ calls this morning, we’ve seen both upside and downside moves across the board in HES, MOS, AEM, and TBT. From a chart perspective, I continue to maintain our directional bias on each play. Therefore, maintain your HES May 60 Calls (IGG EL), MOS May 45 Calls (MOS EI), AEM May 50 Calls (AEM EJ), and TBT June 44 Calls (TBT FR). In fact, just to avoid the risk of a stop-out, eliminate the $2.10 stop on your HES calls from now until the end of the session. I still think HES is setting up for a powerful upside move, so let’s maintain these calls. We’ll revisit this position tomorrow morning.

HES

In terms of new trades, Chinese stocks are currently gaining some aggressive upside momentum. It started with the Chinese solar plays (like STP and CSIQ), but now it’s extending into other Chinese momentum stocks as well. As a result, I’d like to ride this momentum using calls on mobile telecommunications company China Mobile Limited (CHL – NYSE).

CHL

As you can see from the chart, CHL is currently breaking aggressively above its 50-day moving average. This move could easily extend up to the 200-day moving average around the $50.00 level. Let’s ride this momentum play using May calls now.

PLAY: Buy the CHL May 50 Calls (CHL EJ) at or under $1.30, good for the day. Place a protective stop limit at $0.65 and a pre-determined sniper sell at $2.50.

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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