Friday Profit-Taking

Take Gains on ALK & MNST

By Bryan Bottarelli
Friday, October 13, 2006 10:06 AM EST
Fri, 13 Oct 2006 15:06:00 GMT

Dear Bottarelli Research Member,

Yesterday we caught a nice move in Alaska Air (ALK — NYSE).

After entering the ALK November 40 Calls (ALK KH) for $3.20, they jumped up to $3.70 to $4.00 as ALK rallied to set a new 52-week high. As we begin today’s trading session, ALK is off a little, but your calls are still trading for $3.70. Let’s go ahead and take our profits off the table:

PLAY: Sell your ALK November 40 Calls (ALK KH) at or above $3.70, good for the day.

Also on the verge of profit-taking is our play on Monster Worldwide (MNST – NASDAQ). The rumors continue to swirl as a committee of independent directors are reviewing their stock-option practices. This has sparked rumors of a NASDAQ delisting or a possible earnings restatements. None of this can be good for the stock. After missing our exit price by $0.10 yesterday, let’s try to get another exit opportunity in today’s trading.

PLAY: Sell your MNST November 40 Puts (BSQ WH) at or above $3.40, good for the day.

I’ll follow up on our other positions later in the day. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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