Three days ago, I recommended the purchase of SDS calls as my stock of the month. The call that I suggested was the September 24 calls which were then selling for 75 cents. At the moment, the same calls are now worth about 1.72, a gain of 97 cents or 129% in three days. If you took my advice and bought these calls, I recommend that you now sell about a third of your position. This will take most of your money out of the stock but still elave you with a decent position from which to gain if further declines occur.
My expectation is that tomorrow's unemployment numbers will not be good and that the market will go still lower in the next few days. If that is correct, there will be further sizeable gains on the remainder of the position. On the other hand, if the market turns and starts to rise, you can still get out of the calls with a major gain because you will have taken out nearly your entire investment already.
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