Let’s Take Some Profits

CELG and ATK Moving Up

By Bryan Bottarelli
Tuesday, July 25, 2006 10:23 AM EST
Tue, 25 Jul 2006 15:23:00 GMT

Dear Bottarelli Research Member,

Two of our longstanding upside call positions are breaking into the profit zone today, and I’d like to take full advantage. On both occasions, we entered an initial position — and then we added to that same position on momentary price dips. This trading methodology is paying off today, as your Alliant Techsystems November 80 Calls (ATK KP) and your Celgene October 50 Calls (LQH JJ) are both extending yesterday’s upside gains.

As you can see from the chart below, ATK has shot above its 50-day moving average and it looks determined to call this level support. As I write, your November 80 calls are trading between $5.00 and $5.30, a nice upside gain from your original entry prices. Let’s take the profits on ATK, good for the week.

ATK

PLAY: Sell your Alliant Techsystems November 80 Calls (ATK KP) at or above $5.00, good for the week.

Also making a strong up-move today is Celgene (CELG — NASDAQ). In fact, today’s move up to $48.91 has set a new 52-week high. Now as I mentioned yesterday, I think it’s a good idea to take our profits on CELG before they announce their earnings on Thursday. There’s no need risking our current profits on a CELG sell-off based on Wall Street’s distorted perception of their earnings report, so I’m going to take the safe route and take our gains off the table today.

CELG

PLAY: Sell your Celgene October 50 Calls (LQH JJ) at or above $4.00, good for the day.

Lock and load

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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