Closing Thoughts

Managing NTES, OIH, KSS

By Bryan Bottarelli
Wednesday, August 12, 2009 4:01 PM EDT
Wed, 12 Aug 2009 20:01:00 GMT

Dear Bottarelli Research Member,

As I mentioned earlier this morning, I will be speaking at the Taipan Wealth Conference over the next two days. Therefore, there will be no intra-day trading alerts tomorrow or Friday. When it comes to our three current positions on OIH, NTES, and KSS, today’s directional moves leave me quite confident in their abilities going forward. But just as a precautionary note, I’d like to set some standard trading rules to adhere to while I’m away. That way, you can go ahead and lock in profits if we witness a sizable pop in any of these three positions.

On our NTES August 45 Calls (NGH HI), today’s upside move is just about to trigger a new 52-week high. This is certainly a bullish indication. If we get any upside push at the open of tomorrow’s trading, let’s go ahead and lock in our profits. We entered these calls for $2.70, and they’ve traded as high as $3.10 today. Sell them if they trade at or above $3.30 anytime tomorrow or Friday. Sell at or above $3.30.

NTES

Looking at our KSS August 50 Puts (KSS TJ), the stock will close in the red on a day that the market blasted higher. This does not paint a strong picture going forward. We entered these puts for $0.85, and I expect to see them break above $1.00 soon. If that’s the case, go ahead and lock in your profits. Sell at or above $1.00.

KSS

And finally, the OIH September 105 Calls (OIH IA) that we entered today for $4.40 just traded up to $4.70 before dipping back down. Since this is a September position, I’d like to hold it going into next week. Unless we see a complete blast-off on the OIH, which pushes these calls up to $7.00, maintain this play. Hold into next week, unless prices get at or above $7.00 (in which case, sell!).

OIH

If you are planning on coming to the Taipan Wealth Conference, I look forward to meeting you. I think you’ll enjoy my comments. If not, then we’ll talk again next Monday. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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