Close CF

Limit Risk Until Momentum Returns

PLAY: Sell your CF April 95 Calls (O:CF 10D95.00) at market, good for the day.

Dear Bottarelli Research Member,

Good morning. Something tells me that the CF April 95 Calls (O:CF 10D95.00) that we entered for $4.80 just can’t seem to get enough juice to push back to $100.00 (and above). Perhaps it’s the after effects of their Terra acquisition, or perhaps it’s fear of shareholder dilution. Whatever the case, the explosive upside momentum that we’ve been waiting for has proven to be difficult to materialize. Therefore, let’s take the safe road and close out this position now. Trading right at break even, let’s limit our risk and close it out. We can always re-enter CF once the dust settles and the stock regains it’s upside momentum. Until then, let’s close it out.

PLAY: Sell your CF April 95 Calls (O:CF 10D95.00) at market, good for the day.

At the same time, maintain your NFLX April 70 Calls (O:NFLX 10D70.00) and your PNRA April 80 Puts (O:PNRA 10P80.00), which position us on both sides of the market.

As you probably know, the markets have gone up 12 out of the last 14 trading days, which is a streak that cannot last forever. When we witness a pullback, we’ll be glad we’re holding the protective plays on the QID April 17 Calls (O:QID 10D17.00) and the SDS April 33 Calls (O:SDS 10D33.00). Also, continue to maintain the second half of your GG earnings strangle, which is the GG April 39 Puts (O:GG 10P39.00).

As always, I’ll follow up as the session progresses. But until then…

Lock and load!

Sincerely,