Happy New Year!

Here’s To More Great Trading in 2007

By Bryan Bottarelli
Friday, December 29, 2006 9:59 AM EST
Fri, 29 Dec 2006 14:59:00 GMT

Dear Bottarelli Research Member,

Before we begin today’s alert, let me be the first to wish you and your family a Happy New Year! I’m glad you’re part of my elite group of traders, and I’m excited and to bring you the most profitable trading ideas as we flip the calendars over to 2007.

Now onto today’s action…

Although I expect it to be a very light and uneventful day of trading, the extreme volatility in Apple (AAPL – NASDAQ) continues. This morning, the stock is shooting up $4.00 after the company provided some answers about the nature and extent of its stock option grants — notably that CEO Steve Jobs was “aware or recommended” some favorable grant dates but that be did not personally benefit from them.

AAPL

At the same time, AAPL also outlined the financial impact of the options probe, noting an after-tax charge of $84 million. This filing has been delayed since early August — and now that investors know the extent of the probe, they’re reacting favorably because it’s not a major dent to AAPL’s financial earnings.

When I look at this recent trading action, I can’t help but think that this volatility will hand us a wonderful trading opportunity as Apple gets closer to their January earnings release. But until then, let the dust settle with this options probe investigation and we’ll look to make a new play in early to mid January.

Also noteworthy today is the decision from both the NASDAQ and the New York Stock Exchange to close on Tuesday to observe Former President Gerald R. Ford. This further supports our tactical thesis to close up the trading ledger for 2006. The smart move is to place all our new trades in 2007 after a long four-day weekend of time decay — and that’s exactly what we’re going to do. So until then, have a wonderful New Years and we’ll talk again in 2007.

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

© 2012 CSR Group, LLC. All rights reserved. Published in USA.

Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.

CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.

Bottarelli Research alerts contain time-sensitive information, and are published and distributed to members with urgency. Because of this, not all published materials can be adequately proofread, and an occasional spelling or grammar error may exist.


Other Options Alerts From December 2006