Take RIG & DA Profits

Indices Consolidate as You Lock in Gains

By Bryan Bottarelli
Thursday, October 05, 2006 10:03 AM EST
Thu, 5 Oct 2006 15:03:00 GMT

Dear Bottarelli Research Member,

CBS Marketwatch is running the title “Bulls’ Run Looks Out of Gas.” Perhaps it’s true, which would support my “Red October” thesis. Or perhaps it’s not, which would mean that Dow 12,000 is in the cards. But either way, two of our current positions are shooting to the upside this morning and it’s time to take our profits.

As expected, Transocean (RIG – NYSE) is calling $67.50 a temporary support point, which has lead to today’s $1.30 gain. Lets’ lock in our gains on the RIG November 70 Calls (RIG KN).

RIG

PLAY: Sell your RIG November 70 Calls (RIG KN) at or above $3.80, good for the day.

Also jumping to a new 52-week high is Groupe DANONE (DA – NYSE), which has acted as our protective consumer staple. Let’s lock in our gains on the DA January 30 Calls (DA AF).

DA

PLAY: Sell your DA January 30 Calls (DA AF) at or above $1.90, good for the day.

In other good news, Nike (NKE – NYSE) is trading in the red today, which could be the beginning of more downside. Hold your NKE November 90 Puts (NKE WR) as well as your PPH November 75 Calls (PPH KO) and your OSTK November 20 Puts (QKT WD).

Lock and load

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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