Begin the Week with Profits

Sell ALK November 40 Calls

By Bryan Bottarelli
Monday, October 16, 2006 10:05 AM EST
Mon, 16 Oct 2006 15:05:00 GMT

Dear Bottarelli Research Member,

I have a lot of exciting trades in the works for this week, but first let’s do something that we’ve been meaning to do since last week: Take profits on our Alaska Air (ALK – NYSE) November 40 Calls(ALK KH).The stock is opening the day higher by $0.64, which is pushing your calls up to our targeted sell price of $3.70. Let’s take our profits off the table, good for the day:

ALK

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

I’d also like to establish a new upside position in Pacific Ethanol (PEIX – NASDAQ).

Over the last few days, the stock has been shooting aggressively higher on the news that tomorrow will mark the fist day of ethanol production in their Madera, California facility.

PEIX

This plant is expected to operate at a 35-million-gallon-per-year capacity by mid November, which means the company could begin to see their first revenues from production in Q4, ahead of schedule!

As you probably know, Bill Gates and his investment group Cascade Investment LLC, own 25.5% in Pacific Ethanol. Let’s ride the momentum using the November 17.5 Calls.

PLAY: Buy the PEIX November 17.5 Calls (PFQ KW) at or under $1.20, good for the day. Current bid/ask spread is $1.05 to $1.10 per contract.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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