Take ABX Profits!

Lock in 24% Gainer

By Bryan Bottarelli
Tuesday, May 05, 2009 9:38 AM EDT
Tue, 5 May 2009 13:38:00 GMT

PLAY: Sell your ABX June 30 Calls (ABX FF) at market, good for the day.

Dear Bottarelli Research Member,

Gold is opening the session with a $13.00 pop, taking the shiny metal once again above the $900 level. As you know, I expect this move to extend into the $1,000 to $1,300 level, but in terms of today’s move, it’s offering a lift to our ABX June 30 Calls (ABX FF).As you know, we entered these calls on 4/23/2009 for $2.40, and they’ve now hit a high of $3.20, good for a 33% gainer. Let’s go ahead and lock in these profits now, and we can always jump back into an upside gold play if the move continues.

PLAY: Sell your ABX June 30 Calls (ABX FF) at market, good for the day.

In other news, I know that our ultra-short positions on the SRS June 25 Calls (SAK FE) and the FAZ June 8 Calls (FAY FH) got pounded yesterday. If you’re a more conservative trader, I don’t blame you if you adhered to our protective stop loss orders and closed these plays out. Personally, I’m going to stick with them leading into the stress test results on Thursday, so I’ll continue to follow their progress in our trading alerts.

As always, I’ll follow up with more alerts and updates as the day progresses. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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