The mathematical models proved valuable once again this week as the bull put spread trade on PCLN was confirmed by the model, and confirmed by reality as the trade could now be unwound for a profit of $1400 on the initial risk of $2400. If you are sitting on this trade unwind it on Monday morning. There is only $200 in potential profit left in the trade and the risk is now $3800 on the downside.

There is plenty to fear after this choppy week of action even after the solid rally the past two days (or maybe because of it). The potential Italian sovereign debt crisis casts a dark shadow over these markets and for good reason. There is no mechanism in the world that can bail out Italy.
It is with this backdrop that both Dan and Mike are advising cautionary trade advice on Home Depot and Apple. Dan is recommending a collar against any long holdings in AAPL, and Mike is suggesting a stock replacement strategy on HD ahead of earnings.