Good News/ Bad News

GRMN Now Rallying

By Bryan Bottarelli
Wednesday, August 02, 2006 10:09 AM EST
Wed, 2 Aug 2006 15:09:00 GMT

Dear Bottarelli Research Member,

There’s good news and bad news…

The bad news is that Garmin (GRMN – NASDAQ) reported a 66% jump in second-quarter profits, which pushed shares up as much as $9.00 in pre-market activity. Of course, this comes after yesterday’s $6.00 drop leading up to this announcement, which helped us exit at least some of our position for gains (and once again highlights the importance of taking profits off the table before such announcements).

The good news is that GRMN is only up $5.00 in today’s trading session (at least as of this writing), which means they’ve already trimmed $4.00 off their pre-market jump. Looking at the chart, you’ll see this move marked in black. This will help you exit the GRMN August 90 Puts (GQR TR) for at least $1.50, good for the day.

GRMN

To be honest, the way this stock is trading, holding these puts a little longer could probably result in a much smaller loss. Feel free to exit the trade if it’s too risky, but I’ll continue to monitor this one for a secondary exit point.

On a positive note is Barrick Gold (ABX), which continues to rally in a slow and gradual manner. This up-move has pushed your ABX October 30 Calls (ABX JF) up to $3.30, so continue to take profits on them this week.

ABX

Today’s upside move is also helping your CSX November 65 Calls (CSX KM) and your CAT November 75 Calls (CAT KO) regain some upside momentum, so continue to hold each position.

Lock and load

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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