A Morning Pop

Bulls Taking a Stand

By Bryan Bottarelli
Monday, May 18, 2009 9:56 AM EDT
Mon, 18 May 2009 13:56:00 GMT

PLAY: Sell your SQM June 35 Calls (SQM FG) at market, good for the day.

Dear Bottarelli Research Member,

Good morning. The major market averages are opening the session with a strong gain, as the bulls are attempting to use the 8,250 level on the Dow as a near-term support point. As I’ve mentioned before, I feel that the Blue Chips will need to test the 50-day moving average and hold at this level before going any higher, so we’ll see if today’s opening session move can sustain itself throughout the day.

INDU

Looking at our current positions, I’d like to go ahead and lock in profit son our SQM June 35 Calls (SQM FG). We entered these calls last week for $2.10 and they’ve traded as high as $2.50 today, good for a quick 19% gainer. Let’s lock it in now.

SQM

PLAY: Sell your SQM June 35 Calls (SQM FG) at market, good for the day.

On the flipside, our momentum play on the GMCR June 90 Calls (QGM FR) has completely lost steam. As a result, let’s close out our calls now. Sell.

GMCR

Continue to hold your DRYS June 7.50 Calls (OOC FU) and your AEM June 55 Calls (AEM FK), as well as your downside plays on the SRS June 25 Calls (SAK FE) and the FAZ June 8 Calls (FAY FH). As always, I’ll update your on any new developments throughout the day. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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