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Chinese Bubble Trade: Sell Your Options In Our Chinese Aluminum Play Now!

As a result, I am recommending that those of you holding our recommended ACH call options sell them now. We will be selling at a loss, but our aim is to limit the losses as much as possible. The stock would have to advance close to $37 — up roughly 9% from the current price — in the next 10 days for us to make money on this play. That, I think, is unlikely.

The options also have traded today in sufficient quantity so that you should have little problem with liquidity.

If you own the stock, hold on to your shares for now, and keep your stop at $29.50.

I want to emphasize that you should make sure you close out the position — even at a loss — by next Friday, June 8, at the latest. Otherwise, you will run into liquidity problems and will be unable to sell the options before they will expire worthless.

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Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.