Beefing Up Protection
Add FAZ Calls
PLAY: Buy the FAZ November 18 Calls (FEW KR) at or under $1.85, good for the day. Place a protective stop limit at $1.05 and a pre-determined sniper sell at $3.00.
Dear Bottarelli Research Member,
First and foremost, congratulations on a whopping trade from Amazon.com (AMZN – NASDAQ).According to our official track record, I posted an exit price of $12.80, good for a 245% gainer. As I write, you can get even higher prices now! If you played this one, please send me a note at bryan@bottarelliresearch.com and tell me how you did. I’m interested in hearing your trading success story!
In the meantime, we’re left holding the GMCR November 80 Calls (QGM KP) and our protective SDS November 38 Calls (SSH KL). Looking at GMCR, they’re using the strength on the NASDAQ today to jump at the open, which has pushed our calls up to a high of $3.10. Considering our entry price was $3.40, we’re on the verge of breaking into profitability. Hold.
The same goes for SDS. I find it very interesting that companies like Yahoo, Microsoft, Google, Amazon, and Apple have all reported fantastic earnings, yet the Dow has struggled to extend its gains above the 10,000 level. In fact, Wednesday’s end-of-day reversal sent a shiver down my spine that I haven’t felt since the early months of this year. Therefore, I’d like to continue to carry a heavy dose of market protection. Continue to hold your SDS calls. But as an added measure, I’d like to jump back into Direxion Daily Financial Bear 3X Shares (FAZ – NYSE).
As you know, we successfully played the FAZ earlier this week and used Wednesday’s sudden reversal to lock in a quick gainer. Now that the FAZ has dipped back down, let’s re-enter a cheap November call position and play the trend again!
PLAY: Buy the FAZ November 18 Calls (FEW KR) at or under $1.85, good for the day. Place a protective stop limit at $1.05 and a pre-determined sniper sell at $3.00.
And as always…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
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