Add GMCR Calls
Grabbing a Dip
PLAY: Buy the GMCR April 95 Calls (O:GMCR 10D95.00) at or under $3.60 (or best price) good for the day. Place a protective stop limit at $2.10 and a pre-determined sniper sell at $4.50.
Dear Bottarelli Research Member,
As I mentioned this morning, the Wall Street mentality of buying into every single dip remains in play. This morning, for example, the pre-market futures indicated a very weak open, which was sparked by fears over the health care news. But in less than one hour, the weakness has completely reversed, and now the markets are once again moving higher. You can see this action in the Dow chart below:
No matter how strongly I feel about the market’s vulnerability to a downside move, we simply must respect the current trend, which is unquestionably bullish. Therefore, our trading tactic continues to revolve around buying the dips. In this spirit, I’d like to once again jump on board the Green Mountain (GMCR – NASDAQ) train.
As you can see, the stock gapped up to a new 52-week high before dipping late last week. With shares now stabilizing around $92.00, it looks like we once again have an opportunity to jump back on board. Therefore, let’s add April calls now!
PLAY: Buy the GMCR April 95 Calls (O:GMCR 10D95.00) at or under $3.60 (or best price) good for the day. Place a protective stop limit at $2.10 and a pre-determined sniper sell at $4.50.
And as always…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
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