Follow Up: BOL Drops $11.00!

Plus, Maintain your ATW Trade

By Bryan Bottarelli
Tuesday, April 11, 2006 9:57 AM EST
Tue, 11 Apr 2006 14:57:00 GMT

PLAY: Buy the ATW May 52.5 Calls (ATW EX) at or under $5.00, good for the week.

Dear Bottarelli Research Member,

Have you seen Bausch & Lomb (BOL – NYSE) today?

I reported to you last week that BOL was receiving reports of eye-fungus that could be linked to their ReNu contact solution. Based on this news and a downside chart, we entered BOL May 65 Puts (BOL QM) and made a nice one-week hit of 27.45%.

This morning, Wall Street is panicking. Bausch & Lomb said that they’ve stopped shipping their ReNu solution after an increased number of reports of fungal infections in contact lens wearers, and the stock is down a whopping $11.43 on the news! If there is any chance that you’re still holding the BOL May 65 Puts (BOL QM), you can sell them right now between $18.90 and $19.30 per contract!

Of course, I had no idea we’d witness such a monstrous down-move today. To be honest, I thought we did well taking 27% in a week. If anything, it just goes to show you the power of this trading system. If you still own the BOL puts, by all means sell them today and then please email me at: bryan@bottarelliresearch.com and tell me how you did!

Moving on, I’d like to address the ATW May 52.5 Calls (ATW EX). When I sent out yesterday’s alert, I noticed a side bid/ask spread of $4.20 to $5.10. I noticed this as a mis-priced asset, and I instructed you to try buying the contracts at or under $5.00, good for the day.

Apparently, the floor traders realized their mistake and quickly upped their prices the moment our alert went out. Since I don’t think anyone was able to enter these calls for under $5.00, I’m not calling the trade an open position. So what happens now? Well, I’d like you to maintain your $5.00 offer price. ATW is up again today, but if we’re patient, prices may come back down to us. So here’s the trade to maintain, good for the week:

PLAY: Buy the ATW May 52.5 Calls (ATW EX) at or under $5.00, good for the week.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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