A Chance for Quick Profits

Take LAMR Gains

By Bryan Bottarelli
Wednesday, January 10, 2007 3:12 PM EST
Wed, 10 Jan 2007 20:12:00 GMT

Dear Bottarelli Research Member,

Our trade on Lamar Advertising (LAMR — NASDAQ) is working out beautifully.

LAMR

After entering the LAMR April 70 Calls (LJQ DN) this morning for $2.20, two things have happened. One, the stock has continued to rally. And two, the floor traders have apparently realized that these calls were priced too low — and have subsequently increased their value. As a result, your calls have traded as high as $2.80 today, good for a 25% gainer in a matter of hours. Let’s take the money and run!

PLAY: Sell the LAMR April 70 Calls (LJQ DN) at or above $2.75, good for the day. If prices do not trigger by the end of the day, maintain your orders into the open of trading tomorrow.

Also looking good is our SNDK April 47.5 calls (SWF DW), as the stock continues to move higher. Since the charts indicate that we could see strong upward movement, I’d like to hang onto this one for a little longer to maximize our profits.

At the same time, I’m happy to see that TIE is finally ticking up, and our TIE February 30 Calls (TIE BF) trading back up to a high of $1.70 per contract. With our new cost basis of $2.00, any further upside gains will place us squarely in the profit zone.

One trade that we have to let go is our CTRP February 65 Calls (QCT BM). The momentum in the China-related stocks quickly fizzled out — which has subsequently triggered our $3.30 stop price. While I still like the volatility and upward momentum carried by all the China-related stocks, the safe play here is to cut this one off, at least in the near term. There will be many more opportunities going forward to make this one up — and we’ll take full advantage. Until then…

Lock and load

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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