A Busy Morning

NUE Drops, PSA Pops, STP Rocks

By Bryan Bottarelli
Tuesday, December 12, 2006 9:51 AM EST
Tue, 12 Dec 2006 14:51:00 GMT

Dear Bottarelli Research Member,

We’re witnessing some big moves on the open. In a surprise move, Nucor (NUE – NYSE) unexpectedly reported that they expect fourth-quarter earnings in a range of $1.05 to $1.15 a share, a significant decline from the $1.44 that was expected. On the news, NUE is dropping, which subsequently stopped us out of our NUE January 65 Calls (NUE AM).

On the flipside, we’re getting some good news from Public Storage (PSA – NYSE), as the stock popped $2.00 at the open to $97.89. This pushed our PSA March 100 Calls (PSA CT) up to $3.40 per contract, a nice gain from our double-down entry price from yesterday. Let’s take the profits off the table!

PLAY: Sell your PSA March 100 Calls (PSA CT) at or above $3.40, good for the day.

Also moving in our direction is our STP January 30 Puts (STP MF). After entering these puts for $1.20, they’ve traded as high as $1.60 today, good for a nice 33% gainer. Let’s go ahead and enter a sell order at or above $1.60 and see if the orders get filled in today’s trading.

PLAY: Sell your STP January 30 Puts (STP MF) at or above $1.65, good for the day.

Lock and load

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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