Take SDS Profits

Lock in 38% Gainer

By Bryan Bottarelli
Friday, September 25, 2009 12:33 PM EDT
Fri, 25 Sep 2009 16:33:00 GMT

PLAY: Sell your SDS October 40 Calls (SSH JT) at market, good for the day.

Dear Bottarelli Research Member,

As we expected, the major market averages continue to drift lower. Ever since the Fed’s latest announcement on Wednesday, it seems like every rally attempt has been met with selling pressure. In many respects, we’ve been expecting to see such downside movement for months. Now, it finally looks like it’s coming into play. Nevertheless, we must continue to be as nimble as ever. After all, the bulls are not going down without a fight.

SDS

In preparation for this downside movement, we added a protective position on the SDS October 40 Calls (SSH JT) on September 16th for $1.95 per contract. As I write, these calls have hit a high of $2.70, good for a 38% gainer. Let’s close off the week by taking these profits off the table now!

PLAY: Sell your SDS October 40 Calls (SSH JT) at market, good for the day.

This leaves us holding only the MELI October 40 Calls (QMB JH), which have been a very choppy ride. MELI fell hard — and then recovered — in recent trading. Therefore, I’ll continue to follow this position going forward.

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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