Take CREE Profits!

Lock in Modest Gainer

By Bryan Bottarelli
Friday, August 21, 2009 9:42 AM EDT
Fri, 21 Aug 2009 13:42:00 GMT

PLAY: Sell your CREE September 35 Calls (CQR IG) at market, good for the day.

Dear Bottarelli Research Member,

Good morning. For the fourth straight day, the major market averages are moving up. And remember, this upside push comes after Monday’s major market sell-off.

In my view, we’re once again getting into dangerous territory, especially as the Dow moves up to the resistance level at 9,500. Therefore, I’d like to maintain our downside positions. With today being the August options expiration, we could see some volatility as the day progresses. But until then, let’s go ahead and use this morning’s pop to lock in profits on our upside call positions.

Specifically, let’s lock in modest profits on our CREE calls. I don’t want to risk letting a gain slip into a loss, so let’s take our money and run now!

PLAY: Sell your CREE September 35 Calls (CQR IG) at market, good for the day.

This will leave us holding the GS September 165 Calls (GPY IM), SDS September 45 Calls (SSH IS), OIH September 100 Puts (OIH UT), and WYNN September 55 Puts (UWY UK). As always, I’ll follow up as the session wears on. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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