Going Back Into GMCR
Once Again, Add Calls
PLAY: Buy the GMCR October 75 Calls (QGM JO) at or under $1.25, good for the day. Place a protective stop limit at $0.70 and a sniper sell at $2.00.
Dear Bottarelli Research Member,
Going into the close of today’s trading session, we’re holding two downside put positions. First, we’re holding the WYNN October 65 Puts (UWY VM). And second, we’re holding the MOS October 50 Puts (MOS VJ). As I write, both positions are trading right at our entry prices, so we’re well-positioned for further market downside action.
But as you know, this leaves us exposed to the upside, which is something that I’m never comfortable with (especially in this market). Therefore, we’ll correct this situation right now by once again adding calls on our best friend, Green Mountain Coffee Roasters (GMCR – NASDAQ).
I’m not sure if you’ve noticed the pattern here, but GMCR tends to move higher in the first hour of trading and then drifts back lower throughout the remainder of the day. Over the last few days, we’ve been successfully buying GMCR calls going into the close of trading and then selling them during the opening-session pops. Since this has worked so well in the past, I’d like to continue this tactical maneuver today. Not only will we re-establish GMCR calls right at a nice support level (targeting a move up to $75), but we’ll also balance out our trading ledger with a new call. Everything adds up here, so let’s jump back into GMCR now!
PLAY: Buy the GMCR October 75 Calls (QGM JO) at or under $1.25, good for the day. Place a protective stop limit at $0.70 and a sniper sell at $2.00.
And as always…
Lock and load!
Sincerely,
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