Take PCU Profits

Bank 20% on Holiday-Shortened Week

By Bryan Bottarelli
Wednesday, December 27, 2006 10:09 AM EST
Wed, 27 Dec 2006 15:09:00 GMT

Dear Bottarelli Research Member,

Our play on Southern Copper (PCU – NYSE) is gradually ticking higher — which is pushing your PCU February 55 Calls (PCU BK) up to $3.10 in today’s trading. That’s a respectable 19% gain from our $2.60 entry price. As I mentioned yesterday, a recovery in gold and copper prices could be a near-term upside catalyst for PCU, and that trading thesis is playing out exactly as planned. If prices continue to move higher, let’s go ahead and take our profits off the table.

PCU

PLAY: Sell the PCU February 55 Calls (PCU BK) at or above $3.20, good for the day. Last trade was $3.00, so we’re getting close.

We’re also seeing a big-time drop in shares of Apple Computer (AAPL – NASDAQ), but the fall is completely non-technical. That’s not something I like to see.

AAPL

As you can see by the chart, AAPL shares are falling on a new report suggesting that company officials may have falsified stock-option documents in the past to maximize the profits for their executives. According to Law.com, federal prosecutors are currently examining documents to determine whether criminal charges should be filed.

Based on extraneous news events having such a tremendous impact on Apple shares, I’ll probably refrain from entering a play at this time — as there’s no telling how the stock will move based on the news events of that day. If anything changes, you’ll be for first to know. But until then…

Lock and load

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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