Take MRO Profits

Oil’s Pop Leads to Modest Gainer

By Bryan Bottarelli
Monday, January 22, 2007 10:57 AM EST
Mon, 22 Jan 2007 15:57:00 GMT

Dear Bottarelli Research Member,

As we kick off another week of trading, it’s still unclear what direction the market wants to move. At the outset of the year, for example, money was taken out of oil and commodities and put into technology. Then technology quickly faded, so this same money was then transferred from tech into retail. As a result, this sector “churning” has created a more difficult trading environment, where trends do not last longer than one day. Of course, this trading environment will not last forever — but in the meantime, we must continue to be agile and implore quick profit-taking actions, and this morning is one of those situations.

As I write, it appears like oil is back on the rise, as crude prices are spiking over $1.00 in early action. This is what I was looking for when we initiated the play on our MRO April 90 Calls (MRO DR). The calls you entered for $4.10 have traded as high as $4.70, good for a modest 14.6% gainer. Although that gain will not set the world on fire, it’s probably a smart move to take the profits off the table prior to big oil’s earnings announcements that are set to begin on Wednesday.

MRO

PLAY: Sell your MRO April 90 Calls (MRO DR) at or above $4.60, good for the day.

With the markets now down 100 points, I’ll look to add some additional puts to our ledger — so stay tuned. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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