The Volatility Trader
105 W. Monument Street
Baltimore, MD 21201
Thursday, July 26, 2007
Email – #281
Volatility Trader Alert
Dear Subscriber,
When markets fall apart, they go fast. And right now, both our Novatel Wireless (Nasdaq: NVTL) and Mosaic (NYSE: MOS) put positions are doing great. We’re going to leave them open… I believe there’s more downside to come.
And I just noticed many commodity stocks are getting taken apart. We’re going to jump on the bandwagon, and place a sympathy trade…
We’re going to buy the BHP Billiton (NYSE: BHP) September 2007 $62.50 puts (BHP UC) for no more than $3.40. The way Rio Tinto and Cameco have been chopped down in the past few sessions leads me to believe that BHP could be next.
The stock could hit $50 in a matter of days. As a mental stop, if the underlying stock trades above $67.50, I will e-mail you with further guidance.
All of these companies are solid; they’ve just run up too fast too soon. And we’re going to play the pullback.
Exit is everything,
Mark Whistler
Current Portfolio:
Pulte Homes (NYSE: PHM)
Oct 2007 $22.50 calls PHM-JX
Purchased: 7/06/2007
Current Price: $0.75
Novatel Wireless (Nasdaq: NVTL)
Dec $22.50 puts NVU-XX
Purchased: 6/29/2007
Current Price: $1.85
Mosaic (NYSE: MOS)
Sep 07 $35 puts MOS-UG
Purchased: 6/14/2007
Current Price: $2.25
International Coal Group (NYSE: ICO)
Dec 07 $5 calls ICO-LA
Purchased: 5/21/2007
Current Price: $0.30
