Three New Plays

Add NTES and GS Calls, WYNN Puts

By Bryan Bottarelli
Tuesday, August 11, 2009 10:00 AM EDT
Tue, 11 Aug 2009 14:00:00 GMT

PLAY: Buy the NTES August 45 Calls (NGH HI) at or under $2.70, good for the day. Place a protective stop limit at $1.40 and a sniper sell at $5.50.

PLAY: Buy the GS August 165 Calls (GPY HM) at or under $2.45, good for the day. Place a protective stop limit at $1.00 and a sniper sell at $4.00.

PLAY: Buy the WYNN August 55 Puts (UWY TK) at or under $2.70, good for the day. Place a protective stop limit at $1.40 and a sniper sell at $5.50.

Dear Bottarelli Research Member,

Good morning. Yesterday’s three play candidates (NTES, WYNN, and KSS) did not give off any of the trigger signals I was looking for. Therefore, we did not issue plays on any of them. NTES and KSS remained in a tight range, while WYNN reversed to the downside. But this morning, the story is different. NTES has officially broken to the upside, so let’s jump into calls now!

NTES

PLAY: Buy the NTES August 45 Calls (NGH HI) at or under $2.70, good for the day. Place a protective stop limit at $1.40 and a sniper sell at $5.50.

At the same time, I also think we have a nice upside opportunity in Goldman Sachs Group (GS – NYSE). As you can see below, the stock has dipped over the last three days, bringing it down to a nice little support level at $160.00. Let’s buy this dip using August calls.

PLAY: Buy the GS August 165 Calls (GPY HM) at or under $2.45, good for the day. Place a protective stop limit at $1.00 and a sniper sell at $4.00.

And finally, let’s parlay yesterday’s reversal on Wynn Resorts (WYNN – NASDAQ) to add August puts. As you can see below, there’s a massive void between the $55 level and the $40 level, which represents WYNN’s latest upside blast. If this momentum is now dissipating, then adding puts could be a well-timed maneuver. Let’s do it now!

WYNN

PLAY: Buy the WYNN August 55 Puts (UWY TK) at or under $2.70, good for the day. Place a protective stop limit at $1.40 and a sniper sell at $5.50.

And a always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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