Coffee and Gold: Add AEM Puts, GMCR Calls
Playing AEM to $50.00
PLAY: Buy the AEM April 55 Puts (O:AEM 10P55.00) at or under $2.05 (or best price), good for the day. Place a protective stop limit at $1.25 and a pre-determined sniper sell at $3.30.
PLAY: Buy the GMCR April 95 Calls (O:GMCR 10D95.00) at or under $3.40 (or best price), good for the day. Place a protective stop limit at $2.20 and a pre-determined sniper sell at $5.50.
Dear Bottarelli Research Member,
Throughout the trading session, the markets have gotten weaker and weaker. The Dow, for example, made a push towards the 11,000 level which came up short. This could be an early sign of exhaustion. If the bulls do need to catch their breath, then we could very easily expect a move back down to 10,400 on the Dow. That’s a 500-point down-move from current levels.
Of course, I want to see signs of follow-through before playing this market down. But at the same time, we can still pick and choose stocks that look vulnerable. One vulnerable name comes in the form of Agnico Eagle Mines (AEM – NYSE).
As you can see from the chart, AEM looks ready to fall from $55.00 down to $50.00. Therefore, as one final trade of the day, I’d like to play April AEM puts in preparation for a quick downside move. Here’s the play…
PLAY: Buy the AEM April 55 Puts (O:AEM 10P55.00) at or under $2.05 (or best price), good for the day. Place a protective stop limit at $1.25 and a pre-determined sniper sell at $3.30.
At the same time, let’s maintain some level of upside exposure by reloading calls on Green Mountain (GMCR – NASDAQ). As you can see, the cat and mouse game continues at the $95.00 level, and I’m willing to play the rips and dips as long as humanly possible. Get re-positioned now!
PLAY: Buy the GMCR April 95 Calls (O:GMCR 10D95.00) at or under $3.40 (or best price), good for the day. Place a protective stop limit at $2.20 and a pre-determined sniper sell at $5.50.
And as always…
Lock and load!
Sincerely,
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