A Speculative Payback?
Plus, Add GMCR Calls
PLAY: Buy the GMCR April 90 Calls (O:GMCR 10D90.00) at or under $5.40, good for the day. Place a protective stop limit at $3.00 and a pre-determined sniper sell at $7.50.
Dear Bottarelli Research Member,
First off, congratulations on your SHLD and GMCR winners. Both entry and exit points were right on the money, resulting in two great trades. Of course, the euphoria from these two was tempered with today’s down-move on CF Industries (CF – NYSE). But get this: The more I look at this reaction, the more I feel like we’re being presented with a huge opportunity.
You see, ignoring the Terra/CF news, the entire fertilizer sector is getting a massive boost today from news out of Potash of Saskatchewan (POT – NYSE). In a surprise move, POT jacked up their Q1 earnings guidance to $1.30 and $1.50 per share. That’s a major jump, considering their prior forecast was between $0.70 and $1.00 per share. POT’s president Bill Doyle said, “While we know that growth does not follow a straight upward line, we believe the increase in potash volumes this quarter represents the beginning of a return to long-term growth in demand.” With such a positive tone for the sector group, I feel that once the dust settles from today’s CF news, the stock will quickly snap back to join the others in an upside trend.
From a chart perspective, $95.00 looks like a concrete floor. Therefore, today’s news-driven dip looks like a gift from above. Now, I understand that getting put out of the play this morning could leave you a little gun-shy. But as a speculative “pay-back” trade, I think it’s worth a shot to re-establish an upside position in the April 95 Calls. If the $95.00 level holds, then it’ll be time to add a new upside call play. That way, we’ll easily make up for our earlier play in a heartbeat. Stay tuned for this more speculative trade.
At the same time, our friend Green Mountain (GMCR – NASDAQ) has once again retraced back to their own concrete floor at the $91.00 level. As you’ve probably noticed, the name of the game here is to buy at $91.00 and sell into any upside strength as GMCR bounces off this strong support level. We can do this all day and amass a small fortune in short-term trading profits. Therefore, let’s go back to the well once again and reload our calls at the $91.00 level!
PLAY: Buy the GMCR April 90 Calls (O:GMCR 10D90.00) at or under $5.40, good for the day. Place a protective stop limit at $3.00 and a pre-determined sniper sell at $7.50.
And as always…
Lock and load!
Sincerely,
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