I'm sending this Market Alert, because in a few minutes I am going to sell my speculative positions in options on RTP.

In my previous Market Alert, I mentioned put options on RTP that expire in May and June and right now I would suggest selling both types of options.

May options were trading below $7 when I suggested purchasing them, and are now priced above $12.

We had a 10% move down in Rio Tinto (RTP) today and this move was accompanied by strong volume. In RTP, similar moves have usually signaled that a local bottom is already in or will be in a few days. While we may move lower, especially if the general stock market declines from here, I don't think it is profitable to bet on it with these particular options. Additionally, we need to take options' declining time value into account, especially when it comes to May options.

Moreover, in case we move lower from here (general stock market), other options that I mentioned previously, should also gain substantially (FCX and GS put options).

Sincerely,

Przemyslaw Radomski
www.SunshineProfits.com