Take DVN Profits

Plus, TXU, WFC, and CRDN

By Bryan Bottarelli
Thursday, August 17, 2006 9:58 AM EST
Thu, 17 Aug 2006 14:58:00 GMT

Dear Bottarelli Research Member,

When I originally recommended the DVN September 60 Puts (DVN UL) for $1.65, I told you to stay very nimble. This morning, DVN has opened $0.80 lower on the day — which has pushed your September 60 puts up to a high of $2.12. That’s a 28% gain in less than a week, so let’s definitely take our profits off the table now!

DVN

PLAY: Sell your DVN September 60 Puts (DVN UL) at or above $2.00, good for the week.

Let’s also keep a tight eye on the TXU September 65 Calls (TXF IM). The stock just hasn’t been able to mount any sort of continued upside momentum, which has pushed these calls down to a bid/ask of $1.30 to $1.40. Maintain this position with a $1.25 stop loss, as it looks like we’ll have to let TXU find some solid support before engaging in the next up-leg.

TXU

Our other two downside positions in WFC October 35 Puts (WFC VG) and CRDN September 45 Puts (AUE UI) look good, as each stock is in the red today. Maintain each position, and I’ll give you full updates as the conditions warrant. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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