Add AMZN Calls
More Market Strength
PLAY: Buy the AMZN April 135 Calls (O:AMZN 10D135.00) at or under $4.60, good for the day. Place a protective stop limit at $2.90 and a pre-determined sniper sell at $6.50.
Dear Bottarelli Research Member,
Good morning. After yesterday’s end-of-day sell-off, which completely wiped a 100-point gain off the books, I thought that the major market averages would begin today’s session by gapping down. But once again, the major market averages have shrugged off the threat of any substantial down-move and opened the session with more gains.
As you saw with yesterday’s reversal, it doesn’t take much to shoot our downside positions back into play. All we need is a down-move that extends itself for more than one day and we’ll be well-positioned. The trouble is, the moves we’re witnessing do not last longer than one day. In fact, in this market, you’d be hard-pressed to see a playable trend that lasts longer than 1-2 hours. As shocking as it may sound, that’s the reality of today’s market environment. Therefore, we’ll continue to hold positions on both sides of the ledger and take any quick profits that come our way. That’s the only way to trade right now.
As it stands, we’re holding the AEM April 55 Puts (O:AEM 10P55.00), GMCR April 95 Calls (O:GMCR 10D95.00), and CF April 90 Puts (O:CF 10P90.00). During yesterday’s end-of-day sell-off, I was getting ready to take profits on AEM and CF, but I wanted to see if a morning gap-down could maximize our profits. Of course, today’s early bullishness has temporarily thwarted this tactical plan, but the day’s still early. Maintain all three of these positions, along with your protective QID and SDS plays.
In terms of a new play, I’d like to balance out our ratio of calls to puts by adding a new upside play on Amazon.com (AMZN – NASDAQ). In yesterday’s trading, AMZN aggressively broke out of its 9-day trading pattern on heavy volume. If this momentum continues, it’s something that we certainly want to be part of. After all, AMZN is an amazing stock, and a continuation of yesterday’s breakout move could easily push it up towards $140 very quickly. Let’s ride the wave using April calls.
PLAY: Buy the AMZN April 135 Calls (O:AMZN 10D135.00) at or under $4.60, good for the day. Place a protective stop limit at $2.90 and a pre-determined sniper sell at $6.50.
And as always…
Lock and load!
Sincerely,
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