Take GMCR Profits!

Lock in 30% Gainer

By Bryan Bottarelli
Thursday, September 24, 2009 10:16 AM EDT
Thu, 24 Sep 2009 14:16:00 GMT

PLAY: Sell your GMCR October 65 Puts (QGM VM) at market, good for the day.

Dear Bottarelli Research Member,

Good morning. We’ve seen a real tug of war lately, sparked by yesterday’s Fed commentary. As expected, the Fed kept rates unchanged, which initially pushed the major market averages higher. In fact, the Dow got as high as 9,917, which appeared to guarantee that the Dow would once again crack the 10,000 level. But over the final 30 minutes of trading, these gains completely reversed, and the Dow closed down 80 points. Don’t look now, but the bears could be re-emerging near the 10,000 level.

As you know, we’re currently protected against this downside market action using our SDS October 40 Calls (SSH JT). With an average entry price of $1.95, we’re currently in the black, as they’ve now traded as high as $2.10. Hold.

At the same time, we also entered the GMCR October 65 Puts (QGM VM) on September 22nd for $2.25, and these puts have now hit a high of $3.10. That’s good for a 37% gainer, so let’s lock in these profits now!

PLAY: Sell your GMCR October 65 Puts (QGM VM) at market, good for the day.

Over on the call side, the momentum has come to a abrupt halt on the Chinese casino stocks, stopping us out on our LVS October 20 Calls (LJJ JS). With a pending IPO on the horizon, I still feel that LVS has tremendous upside potential. In fact, we just might add November calls if this dip extends itself. But for now, close out your October calls. Sell.

We’re also holding the QID October 23 Puts (QOI VW) and the MELI October 40 Calls (QMB JH). Let’s give each play a little more time.

As always, I’ll keep you fully updated as the day progresses. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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