Close WHR, FDX
Trend Reversing
Dear Bottarelli Research Member,
Sadly, it’s time to exit our two long positions in the FDX February 90 Calls (FDX BR) and WHR February 85 Calls (OFW BQ). As you can see from the Dow chart below, today’s price-tick has now broken below yesterday’s low, which indicates that the Blue Chips could have more downside ahead. With this type of volatility, we simply cannot hold our remaining calls. Therefore, close FDX and WHR now. Sell.
In terms of our other plays, continue holding our two earnings hedge plays, which are the HOG February 25 Calls (HOG BR) and HOG February 24 Puts (JOZ NH ) and the STX February 19 Calls (STX BY) and STX February 17 Puts (STX NS). I’ll continue to manage these plays in the best manner possible leading up to earnings.
Also, maintain our two downside plays on the IOC February 70 Puts (IOC NN) and FAZ February 17 Calls (FEW BQ). If the downside continues, we’ll eventually be glad we owned these plays.
And as always…
Lock and load
Sincerely,
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