Take Quick Profits

Sell PDS for Overnight Gains

By Bryan Bottarelli
Tuesday, April 25, 2006 10:53 AM EST
Tue, 25 Apr 2006 15:53:00 GMT

Dear Bottarelli Research Member,

This morning’s down-move is exactly what I expected. That’s why we’ll continue holding both our Dell June 30 Puts (DLQ RF) and our SPY June 129 Puts (SPY RY), which are each using today’s weakness to post a gain.

At the same time, I’d like to also continue to hold ADM June 35 Calls (ADM FG) and our speculative play on FCL May 50 Calls (FCL EJ). The ADM calls go out into June, so we have time on our side. The FCL calls could get a tremendous boost if tomorrow’s earnings report comes in strong.

But for today, I’d like to take our profits off the table on the PDS May 35 Calls (PDS EG).We entered them yesterday for $1.35, and they’ve traded as high as $1.80 today. That’s an overnight gainer of 33%. They’re currently between $1.55 and $1.60, which still represents a solid winner on an overall weak market day. When you see this type of broad-based market weakness, it’s always a good idea taking your call gains off the table. So let’s do that now!

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

Lock and load

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

© 2012 CSR Group, LLC. All rights reserved. Published in USA.

Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.

CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.

Bottarelli Research alerts contain time-sensitive information, and are published and distributed to members with urgency. Because of this, not all published materials can be adequately proofread, and an occasional spelling or grammar error may exist.


Other Options Alerts From April 2006