Once Again, Play GMCR Calls
Buying Another Dip
PLAY: Buy the GMCR October 75 Calls (QGM JO) at or under $1.10, good for the day. Place a protective stop limit at $0.70 and a sniper sell at $1.80
Dear Bottarelli Research Member,
Good morning. After another furious market upside run, we’re getting mixed signals this morning. With the U.S. dollar rising, commodity plays (namely oil and gold) are taking a slight dip. The question is whether or not this dip is a buying opportunity or an early exit signal? At the same time, the Dow has once again shot up to the 9,800 level, which is close to where it failed in late September. So as it stands, pretty much every stock I follow is technically over-bought, yet they have strong momentum on their side. The trick is to decipher how long the upside move can last.
In terms of our trading ledger, we’re currently flat. And to be honest with you, I’m comfortable being flat at this potential directional shift in the markets (aka, the Dow’s double-top). But the one trade I am willing to take is another call play on Green Mountain Coffee Roasters (GMCR – NASDAQ).We have a good idea of how GMCR trades, so let’s use today’s dip to reload our October calls.
PLAY: Buy the GMCR October 75 Calls (QGM JO) at or under $1.10, good for the day. Place a protective stop limit at $0.70 and a sniper sell at $1.80.
And as always…
Lock and load!
Sincerely,
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