Still Buying Any Dip
Unload PNRA Puts
PLAY: Sell your PNRA April 80 Puts (O:PNRA 10P80.00) at market, good for the day.
Dear Bottarelli Research Member,
Even with a rash of concerning news, Wall Street continues to shrug off the news and buy into any dip. If this trend continues, then we must increase our long exposure.
After all, since we’re protected to the downside using SDS and QID, then we just counteract these plays with upside exposure to capitalize on any market up-move. That’s why we’re holding NFLX calls, for example. But we need more upside exposure in our ledger. Based on this thinking, let’s dump our PNRA April 80 Puts (O:PNRA 10P80.00).
If the market was set to break down, holding PNRA puts would be a good move. But since all of today’s news can’t push the markets lower, we have to respect the support level at $79.00 and close off this play for a manageable loss. To be honest, if PNRA can break above $80.00, we might play it higher using April calls. But in the meantime, sell your PNRA puts. Given the market’s reaction, this is the safest and smartest play.
PLAY: Sell your PNRA April 80 Puts (O:PNRA 10P80.00) at market, good for the day.
Going forward, I’ll alert to you any new upside plays. But until then…
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.