Roll CF into April
Buy More Time
PLAY: Sell your CF March 100 Calls (O:CF 10C100.00) at market, good for the day. Then, use the proceeds to buy the CF April 105 Calls (O:CF 10D105.00) at market, good for the day. Reset your stop limit to $3.10 and your sniper sell to $8.60.
Dear Bottarelli Research Member,
Although we’ve held the CF March 100 Calls (O:CF 10C100.00) for only two calendar days, it’s already been a wild ride. Throughout a series of gap-downs, CF has always seen buyers step in at the $100 level. This tells me that the stock has nice support at $100, which is also backed up by the chart below. Therefore, I think that if we hold our ground, we should enjoy a run-up back to the $110.00 level.
As you know, we entered our CF March 100 Calls for $6.30, and they’re currently trading at $5.00. Since CF needs some additional time to spark the next upside push, I’d like to “roll” our March calls into April calls, thus buying ourselves one additional month of expiration time. The way we’ll do this is by selling our CF March 100 Calls (O:CF 10C100.00) for around $5.00, and then using the proceeds to buy the CF April 105 Calls (O:CF 10D105.00) for around $5.40. This will require an extra $0.40 of out-of-pocket cost, but I think it’ll be well worth it for the additional month of time. Let’s execute this “roll” strategy now!
PLAY: Sell your CF March 100 Calls (O:CF 10C100.00) at market, good for the day. Then, use the proceeds to buy the CF April 105 Calls (O:CF 10D105.00) at market, good for the day. Reset your stop limit to $3.10 and your sniper sell to $8.60.
And as always…
Lock and load!
Sincerely,
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