Add CF Puts
Playing More Weakness
PLAY: Buy the CF April 90 Puts (O:CF 10P90.00) at or under $2.30, good for the day. Place a protective stop limit at $1.60 and a pre-determined sniper sell at $4.00.
Dear Bottarelli Research Member,
First and foremost, congratulations on your Netflix and Green Mountain trades from earlier this morning. As you can see from this early action, it’s imperative that we continue using our rifleman mentality and quickly sweep our profits off the table on any semblance of strength. With a market that’s more jittery than a greased hog in a rainstorm, we have no choice but to lock in gains the moment any position moves our direction. Locking in gains on NFLX and GMCR close to the high of the day supports this tactical approach.
Now, when it comes to new positions, I think we’ve discovered the anti-Green Mountain. For example, I’m sure you know that GMCR is a stock that we tend to buy on any significant dip. Well, it’s becoming clear to me that CF Industries (CF – NYSE) is a stock that we can adopt the exact opposite approach. That is, we short any rally. Let’s go ahead and add CF puts in advance of a coming pullback.
PLAY: Buy the CF April 90 Puts (O:CF 10P90.00) at or under $2.30, good for the day. Place a protective stop limit at $1.60 and a pre-determined sniper sell at $4.00.
And as always…
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.