WDC Strategy
Sell WDC Calls
PLAY: Sell your WDC February 46 Calls (FJI BT) at market, good for the day. Hold your WDC February 43 Puts (FJI NQ).
Dear Bottarelli Research Member,
Similar to our move on HOG (sell calls, hold puts), I’d like to make the same play on Western Digital (WDC – NYSE). Looking at the daily WDC chart, the stock has a strong support level at $43.28, which represents its low over the last 4-5 trading sessions. As you can see, this level has been penetrated. Therefore, for this play, I think our maneuver is to sell our calls for whatever we can, and allow our puts to push into profitability.
PLAY: Sell your WDC February 46 Calls (FJI BT) at market, good for the day. Hold your WDC February 43 Puts (FJI NQ).
NOTE: When it comes to these earnings plays, it’s always critical that we witness a large enough move on earnings day. When the move is muted, like we’ve seen today on both WDC and HOG, managing these plays becomes much trickier. As always, I’ll continue offering you the best management advice possible. But in cases like this, when the earnings fail to push the stock enough in our direction, we have to get creative. That’s not to say that these plays are dead in the water — not by a long shot. I’m just saying that we now have to cut one side loose, and then have the other side push us into profitability. That’s exactly what we’re now doing on both HOG and WDC.
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.