RAIL Hits $7.10 Sell Price

Your Wednesday Update

By Bryan Bottarelli
Wednesday, February 15, 2006 11:29 AM EST
Wed, 15 Feb 2006 16:29:00 GMT

Dear Bottarelli Research Member,

Here we go again…

As Ben Bernanke sits down for the first time ever with Congress, Wall Street is already hanging on his every word. Thus far, he hasn’t said anything surprising, which Wall Street is welcoming as a good thing. He comment that more rate hikes “may” be needed as the threat of higher inflation persists — but we all knew that already. So while the firing squad welcomes our new Fed Chief, I’ll talk to you about what’s really important: making money on your open positions.

Here’s your quick Wednesday update…

Based off my sell alert on RAIL from yesterday, I noticed sell orders of $7.10 hitting the tape first thing this morning on your March 60 Calls (RQN CL). The position is officially closed. Congratulations to everyone who made money off this trade. It’s just a small taste of what’s coming.

The MDC June 65 Puts (MDC RM) you bought for $7.10 traded as high as $6.70 today. The stock is trying to mount a rally off its recent low, but we’ve seen this all before. I think it’ll once again fail. Hold your puts.

For all you super-speculators, I have the feeling I’ll be saying this a lot, but Google has once again been all over the map. As I write, the June 240 puts (GOU RH) you bought for $4.50 have traded as high as $4.80 today. I’ll keep an eye on this one, and issue a super-fast “take profits” alert when the time is right. For now, hold.

I’d like to take profits on a play that I issued back on January 10th. The stock was eCollege, and it was a $20 stock that just hit a new 52-week high. I entered the ECLG March 20 Calls (EGU CD) for $1.80, and they currently trade for $2.00. The stock is going up, but it’s just inching higher. There are more explosive moves out there, so I’d like to take the profits off the table on this one.

PLAY: Sell eCollege March 20 calls (EGU CD) at or above $2.00, good for the day. That’s an 11% gain.

And finally, the most aggressive and speculative play I have currently open, the Intuitive Surgical March 115 Calls (AXQ CC). I’ve received some questions about whether or not you should buy these calls. At this time, my answer is no. They’re simply too risky at this time, and I want to gain your trust by making solid, profitable winners.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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