GPRO Profits, Part II

Another Quick Chance to Lock in Gains

By Bryan Bottarelli
Friday, June 02, 2006 10:10 AM EST
Fri, 2 Jun 2006 15:10:00 GMT

PLAY: Sell the GPRO November 55 Calls (PSU KK) at or above $6.50, good until cancelled.

Dear Bottarelli Research Member,

On May 31st, we tried to take profits on our GPRO November 55 Calls (PSU KK) at or above $6.50. Prices moved quite fast that day, so I’m not sure everyone had the opportunity to exit at those levels. If that’s the case, you’re getting a second chance today!

GPRO

During this morning’s trading, your GPRO November 55 Calls (PSU KK) have traded once again for $6.50. The last trade is now $6.30, so these prices make quick moves. Therefore, make sure to use opportunities like this to take your profits off the table!

PLAY: Sell the GPRO November 55 Calls (PSU KK) at or above $6.50, good until cancelled.

Also keep an eye on your JOE puts, which could experience weakness as a result of news out of Pulte (PHM — NYSE). Today, the Michigan homebuilder warned that their second-quarter and 2006 earnings would fall short of expectations — citing an increase in inventory, higher cancellation rates, and higher interest rates. Their new orders for the first two months of the quarter fell 29% from a year earlier — which sets a weak tone for all the homebuilder and real estate stocks. If your JOE July 50 Puts (JOE SJ) trade for $5.00, I’d be looking to take the profits. Current bid/ask spread is $4.10 to $4.40.

Lock and load

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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