Weekly Wrap-Up

Enjoy Tomorrow’s Market Holiday

Dear Bottarelli Research Member,

First and foremost, I’d like to welcome all our newest Charter Members into the group. I’ve said it once and I’ll say it again, you’re now part of an exclusive and tight-knit group of “rifleman” traders whose one and only goal is to make the very best trades the market has to offer. And for that, I’m glad you’re part of this elite service. Having said that, let’s get into today’s trading action…

Today got off to a bang when our newest play, the Ceradyne May 50 Calls (AUE EJ), shot out of the gates by continuing their strong run-up — and holding these early-morning gains throughout the entire trading day. Just look at the chart:

Although there wasn’t any new news on the stock this morning, a simple look at the chart showed me that the ceramic body-armor company had plenty of room to move. We entered the CRDN May 50 Calls yesterday for $4.10 and sold them today for $5.90. In fact, they even traded as high as $6.10. Either way, that 43% overnight gainer is a great example of this system in action.

Now I do understand that this trade moved very fast, and this is bound to happen with trading every once in a while. If you got in on this one, great! If not, don’t worry — there will be plenty of other trades like this coming to you in the future! Plus, many of you have asked about setting up an auto-trade arrangement to catch these quick movers, and that’s almost ready to be set up. So that’s all good news.

After taking profits on CRDN, that leaves us with three open positions right now. The ATW May 52.5 Calls (ATW EX) mounted a great turn-around today, reversing their drop from yesterday and closing the trading day at $4.90. We entered these calls for $5.00, so we’re right in the ballpark. Next week, I’d look for Atwood Oceanics (ATW – NYSE) to continue its upside momentum, as oil isn’t getting any cheaper. Hold.

Our other upside call is the BDX June 60 Calls (BDX FL). And unlike Ceradyne, these calls have moved extremely slowly. Becton Dickinson is a medical device company who is one of the world leaders in injection devices and blood glucose monitors for diabetes — a medical condition that’s literally exploding in America. I think they’re very well positioned for continued upside growth.

If you look at the chart, the stock hit a new 52-week high in mid-February and has since fallen off those high-water marks. The company reports earnings on Wednesday, April 26^th, and I’m hoping that the lead-up to that report could be the catalyst for further upside momentum. Although I’m not a patient person by nature, I’m still inclined to hold the calls (at least for now).

Our one downside put play comes in the form of Oxford Industries (OXM – NYSE), the makers of the very popular Tommy Bahama line of clothing — and also makers of the very unpopular Ben Sherman line of clothing. As you can see by the chart, Wall Street has not taken too kindly to the stock. In fact, if the last three days of ever-so-slight gains is all the bulls can muster up, then this one is primed for continued weakness. The stock was down once again today, and the May 50 Puts you entered for $5.50 closed the day at $5.80. For that, you should keep holding your OXM May 50 Puts (PXM QJ).

The markets are closed tomorrow so enjoy your three-day market holiday — and we’ll be back at it again next week. And as always,

Lock and load

Sincerely,