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November 21, 2009
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Patterson Companies Inc. (PDCO) Profits
April 17, 2009'Sell to close' 50% of the PDCO July 20 Calls (DOUGD) for $2.40 or more
'Buy to close' 50% of the PDCO July 17.50 Puts (DOUSW) for 50 cents or less
Dear Fellow Options Traders,
On March 24, we recommended a couple of bullish ways to trade Patterson Companies (PDCO).
Today, we are recommending to close out 50% of the PDCO spread trade: 'Sell to close' 50% of the PDCO July 20 Calls (DOUGD) for $2.40 or more, and 'buy to close' 50% of the PDCO July 17.50 Puts (DOUSW) for 50 cents or less.
We paid 5 cents to put this spread on and today we can close it for $1.90 gain. It's not every day that you can turn a nickel into almost $2. For traders who decided to only buy the calls, we think the probability remains good that there is more to gain -- so keep half of your positions open.
Have a great day trading.
Nick Atkeson and Andrew Houghton
Editors
Options Trader
