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Take FLML Gains, CAL Stopped

By Bryan Bottarelli
Tuesday, October 31, 2006 9:44 AM EST
Tue, 31 Oct 2006 14:44:00 GMT

Dear Bottarelli Research Member,

As the open of trading, your Archer Daniels Midland ADM November 35 Calls (ADM KG) traded for $4.80. As you take those profits, we have another position that’s shooting higher and triggering a “take profits” alert, and that trade comes in the form of FLML December 20 Calls (FLU LD).

As I instructed last week, leaving your $5.00 sell order in was a good idea, as those orders should be getting triggered this morning. With Flamel shooting up $0.50 to a new 52-week high, this move is pushing your calls up to $5.20 to $5.40 per contract. Take your profits now!

PLAY: Sell your FLML December 20 Calls (FLU LD) at or above $5.00, good for the day.

Unfortunately our position in the CAL December 35 Puts (CAL XG) triggered our $1.40 stop yesterday, as the fall in oil prices acted as a bullish catalyst for the airline sector. I still feel the CAL could move lower if (and when) oil prices tick back up again, so be ready for a possible second put trade. But for now, the position is closed.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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