Locking in TIE Gains

12% In One Hour

By Bryan Bottarelli
Tuesday, October 24, 2006 2:51 PM EST
Tue, 24 Oct 2006 19:51:00 GMT

Dear Bottarelli Research Member,

In past trading missives, I’ve attempted to take instant profits on some of our trades — only to see the maximum prices for that day fall back down towards the end of the trading day. Your December 20 Calls (FLU LD) on Flamel are a good example.

After peaking for $5.30 yesterday, they’re still profitable in today’s trading — but not as profitable as their high-water market from yesterday. As a result, we’ll continue to work a $5.00 sell price to lock in a nice shorter-term gain.

I mention this because I don’t want to miss the opportunity we have right now in Titanium Metals (TIE – NYSE).After entering the TIE December 30 Calls (TIE LF) for $3.20, they’re currently trading for $3.60 on a strong upside move on TIE. This is handing you a 12% gain in less than two hours, and I’d like to lock in the gains now.

TIE

PLAY: Sell your TIE December 30 Calls (TIE LF) at or above $3.60, good for the day.

As I’ve said before, we can always re-enter the position on any price weakness, but I’d simply like to be opportunistic in this choppy market and lock in our gains today.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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