Action Alert: TM Hits 48%: Sell Half!

Lock in Quick Gainer

By Bryan Bottarelli
Wednesday, February 03, 2010 10:43 AM EST
Wed, 3 Feb 2010 15:43:00 GMT

PLAY: Sell half of your TM July 75 Puts (TM 10S75.00) at market, good for the day. Hold the remainder for more gains.

Dear Bottarelli Research Member,

The news for Toyota (TM – NYSE) keeps getting worse. Now, the Japanese government has ordered Toyota to investigate a possible defect in their popular Toyota Prius hybrid after receiving 14 reports of brake trouble. On this news, shares of TM have continued to fall, which has pushed our TM July 75 Puts (TM 10S75.00) from Monday’s entry price at $4.70 up to $7.00. That’s a quick 48.94% gainer!

TM

Considering that Toyota reports earnings tomorrow, let’s take the safe road. That is, go ahead and lock in half of our profits now. Then, hold the remainder for more weakness in TM.

PLAY: Sell half of your TM July 75 Puts (TM 10S75.00) at market, good for the day. Hold the remainder for more gains.

Congratulations on a quick winner!

Sincerely,

Bryan Bottarelli
Editor, Bottarelli Research
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