Add DRQ Calls
Playing a Dip
PLAY: Buy the DRQ November 55 Calls (DRQ KK) at or under $2.00, good for the day. Place a protective stop limit at $1.30 and a pre-determined sniper sell at $3.50.
Dear Bottarelli Research Member,
I mentioned this morning that the “dip buyers” are a pesky bunch, and today’s reversal on the Dow is proving that point. When you combine these intra-day price swings with a rash of pending earnings, our trading must continue to be quick and decisive. So in that spirit, I’d like to make a quick trade on deepwater oil equipment maker Dril-Quip (DRQ – NYSE).From a daily perspective, I like the idea of using today’s dip to establish a new call position going into November.
And on a 60-minute chart you can see that we’re adding calls as the stock has dipped nicely to a near-term support level at $52.00. Let’s use this dip to our advantage now!
PLAY: Buy the DRQ November 55 Calls (DRQ KK) at or under $2.00, good for the day. Place a protective stop limit at $1.30 and a pre-determined sniper sell at $3.50.
And as always…
Lock and load!
Sincerely,
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