Dancing with CSIQ
Sell Puts, Hold Calls
PLAY: Sell your CSIQ March 19 Puts (O:CSIQ 10O19.00) at market. Hold your CSIQ March 20 Calls (O:CSIQ 10C20.00) for more upside.
Dear Bottarelli Research Member,
First and foremost, congratulations on your JOYG winner from this morning. Throughout the trading session, JOYG has continued to power higher, allowing you to achieve even better profit margins. This is exactly how these earnings plays are designed to work. If you played JOYG, then nice trade!
Now, when it comes to Canadian Solar (CSIQ – NASDAQ), I think the company’s forward guidance has set in motion a bullish catalyst that could take the shares up to test the 50-day moving average just under $25.00. From a chart perspective, you can also see an unfilled void between $22.50 and $24.00, which is something that we’ll see get filled in the coming days. Therefore, let’s go ahead and sell our CSIQ March 19 Puts (O:CSIQ 10O19.00), and then let our CSIQ March 20 Calls (O:CSIQ 10C20.00) take the position into profitability.
PLAY: PLAY: Sell your CSIQ March 19 Puts (O:CSIQ 10O19.00) at market. Hold your CSIQ March 20 Calls (O:CSIQ 10C20.00) for more upside.
In terms of our other positions, continue to hold your SHLD March 95 Calls (O:SHLD 10C95.00), which we entered on February 24th for $3.35. These calls are currently trading for $3.60, which puts us in the money. But from a chart perspective, SHLD still has plenty of room to move up. Hold for more gains.
And then, just in case we witness another sell off, continue to hold your two protective positions on the SDS March 35 Calls (O:SDS 10C35.00) and the FAZ March 18 Calls (O:FAZ 10C18.00). As we’ve all seen, this market can turn on its tail at a moment’s notice, so we must be vigilant and prepared for any forthcoming reversals.
EDITOR’S NOTE: Due to travel plans, I will be out of the office for the next two days. Therefore, there will be no trading alerts tomorrow or Friday. After hitting a nice string of winners on NEM, AGU, GMCR, and JOYG, let’s sit back over the next two days and hold our current positions leading into next week. We’ll restart our trading engine next Monday. If you’re a LEAPS or Blasters subscriber, your Friday afternoon and Saturday morning alerts will be delivered on schedule.
Until then…
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.