Add to FDX
Lower Cost Basis
PLAY: Buy more FDX February 90 Calls (FDX BR) at market, good for the day.
Dear Bottarelli Research Member,
Congratulations on two nice winners today on GMCR and CTRP (and one marginal winner on FAZ). In addition to better entry/exit points, another 2010 goal I’ve set for Bottarelli Research is to be very diligent about limiting losses. So, using today’s FAZ as an example, if I get the sense that the upside momentum has been capped off, I will not hesitate to sell a position for a marginal gain. After all, I’m sure you’ll certainly agree that a 4.43% gain beats a 30% loss. Looking at today’s reversal on FAZ, this exit signal was timed perfectly. By sticking to this framework, we’ll avoid suffering through that one big losing trade. Be sidestepping the one big loser, I’m confident that it’ll result in trading returns that’ll be far superior to anything we’ve seen in the past. So far this year, the returns speak for themselves: 10 trades and 9 winners (and the one loser was -10%). So far, so good.
In terms of our current positions, I think it’s time to add to our FedEx (FDX – NYSE) position. After a well-timed entry yesterday, FDX has dipped down in today’s trading. But it’s important to note that the FDX downside has stalled at the low over the last three trading sessions, which falls right around $85.50. With this support level in place, let’s add to our calls now and lower our cost basis.
PLAY: Buy more FDX February 90 Calls (FDX BR) at market, good for the day. Lower your protective stop limit by $0.30.
And as always…
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.