Add to GMCR
Lower Cost Basis
PLAY: Buy more GMCR October 75 Calls (QGM JO) at market, good for the day. Lower your protective stop limit to $0.60.
Dear Bottarelli Research Member,
I mentioned this morning that I’m never comfortable with large directional moves in the first few moments of trading. From the way trading has progressed this afternoon, you can see why. As I write, the market’s internal strength is wearing off, which has caused most stocks to come off their daily highs. But at the same time, this could also be a temporary profit-taking breather before another end-of-day push. So once again, we’ll continue playing this market in the most sensible and nimble manner possible.
As part of this nimble strategy, I’d like to lower our cost basis and add to our GMCR October 75 Calls (QGM JO).As you know, GMCR can move very quickly, and something doesn’t seem right about today’s trading pattern. We re-entered October calls this afternoon for $1.60, but you can now grab them for $1.00. With strong support at the $70.00 level, I still think GMCR has more upside to come. Therefore, let’s use this afternoon’s dip to lower our cost basis by adding to our position now.
PLAY: Buy more GMCR October 75 Calls (QGM JO) at market, good for the day. Lower your protective stop limit to $0.60.
At the same time, I’m continuing to watch Wynn Resorts (WYNN – NASDAQ). Despite the market’s strong upside move, I found it odd that WYNN is not showing much strength today. This indicates that the company’s internals are weak, despite a strong overall market. Check it out:
Just imagine what could happen to WYNN if the markets make a downside move. In short, it could drop another $5.00 very quickly. Therefore, I’ll continue to watch WYNN for the best available entry point.
Until then…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.
Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.
CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.