Two New Plays
Add RIMM and AEM Puts
PLAY: Buy the RIMM March 70 Puts (O:RIMM 10O70.00) at or under $3.30, good for the day. Place a protective stop limit at $2.10 and a pre-determined sniper sell at $4.90.
PLAY: Buy the AEM March 55 Puts (O:AEM 10O55.00) at or under $1.55, good for the day. Place a protective stop limit at $0.90 and a pre-determined sniper sell at $3.00.
Dear Bottarelli Research Member,
After exiting the ANF March 33 Calls (O:ANF 10C33.00) this morning for $2.54, we’re left holding the ANF March 32 Puts (O:ANF 10O32.00). Our break-even on this play is $0.66 on the puts, and they’re currently trading for $0.74. One more downward push and we’ll be in business. Hold.
In other news, I mentioned last week that the chart formation on Research In Motion (RIMM – NASDAQ) was looking weak, based primarily on the fact that their Blackberry device was losing ground to Apple’s iPhone. Well, this morning, RIMM Co-CEO Mike Lazaridis confirmed my comments by saying that Research In Motion is still playing catch-up when it comes to offering a good Internet experience on the Blackberry, but a revamped browser is coming later this year. This announcement was seen as an admission of inferiority to RIMM shareholders, which has pushed the stock lower on the news. From a chart perspective, RIMM has a great double-top at $72.50. They also have a breakout failure at the 200-day moving average, which indicates that a move down to $67.70 or $65.00 could be in the cards. Let’s get positioned to ride this down-move using puts.
PLAY: Buy the RIMM March 70 Puts (O:RIMM 10O70.00) at or under $3.30, good for the day. Place a protective stop limit at $2.10 and a pre-determined sniper sell at $4.90.
Also on tap for earnings after today’s close is Whole Foods Market (WFMI – NASDAQ). As you know, we’re currently holding the WFMI March 29 Calls (O:WFMI 10C29.00) and WFMI March 27 Puts (O:WFMI 10O27.00) for a total price of $2.85. To be honest, I’m tempted to use WFMI’s run-up to sell our calls and hold our puts going into earnings. More on this strategy as the day progresses.
And finally, I have a speculative play on Agnico-Eagle Mines (AEM – NYSE). As one of the most volatile gold plays I follow, AEM has been known to really stink up the joint on earnings day. As you can see below, the stock has once again run up leading into their earnings (which are released tomorrow after the close). From a chart perspective, the stock is sitting at a big resistance level. This could offer us a speculative opportunity to play puts. As a super-speculative directional earnings play, let’s roll the dice and add a cheap put with explosive potential.
PLAY: Buy the AEM March 55 Puts (O:AEM 10O55.00) at or under $1.55, good for the day. Place a protective stop limit at $0.90 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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