PDS Triggers

Prices Hit $1.65 as Stock Hits High of $36.28

By Bryan Bottarelli
Tuesday, April 25, 2006 3:47 PM EST
Tue, 25 Apr 2006 20:47:00 GMT

Dear Bottarelli Research Member,

This is just a quick email to follow-up on this morning’s “take profits” alert, which instructed you to sell your PDS May 35 Calls (PDS EG) at or above $1.60, good for the day.

Shortly after sending that alert, the prices moved down — and stayed there for most of the trading day. But with less than 30 minutes left in today’s session, the stock has rallied hard, setting a new 52-week high of $36.28.

PDS

Despite today’s market sell-off, this strong up-move have pushed your PDS May 35 Calls (PDS EG) above our profit zone. As I write, they’re trading between $1.65 and $1.70, so if you haven’t already done so, sell your PDS May 35 Calls at or above $1.60, good for the day!

PLAY: Sell your PDS May 35 Calls at or above $1.60, good for the day.

As far as today’s selling pressure goes, the fear of interest rate hikes will trump anything else the market throws its way. This has never been more evident than today — when sales of existing homes rose unexpectedly in March, consumer confidence hit its highest level since May 2002, crude-oil prices are dropping, and earnings reports from the likes of AT&T, Yum Brands and JetBlue Airways continue to come in stronger than expected.

With all this good news, the markets are still dropping. This is why I’d like to maintain our downside put positions on both the SPY and DELL — to protect against further downside movement. As far as our upside calls, I remain a longer-term bull on ADM, and I’m hoping a blockbuster earnings report tomorrow from FCL pushed that stock aggressively higher.

Until tomorrow — Lock and load,

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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