Two Early Notes

Maintain MRO Sell, Watch NSC

By Bryan Bottarelli
Tuesday, January 23, 2007 9:27 AM EST
Tue, 23 Jan 2007 14:27:00 GMT

Dear Bottarelli Research Member,

As we get set to start the trading day, oil is up $0.80 in pre-market activity — as continued cold weather across the U.S. is pushing prices up once again. Let’s use this price jump to maintain our $4.60 sell orders on the MRO April 90 Calls (MRO DR).

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

Also crossing the tape this morning is earnings news out of U.S. railroad operator CSX (CSX – NYSE). The company reported earnings of $0.57 a share — exactly in-line with expectations. They also reaffirmed their previous outlook for 2007, which looks to have disappointed investors. After all, I can’t remember the last time a stock rallied after meeting expectations, so we could see some profit-taking today. In fact, CSX shares were down as much as 3% in after hours trading.

I bring this up because it could serve as a nice catalyst for our NSC March 50 Puts (NSC OJ), as a broad-based transport sell-off would hand us a nice gainer. So keep a close eye on these puts, as we could be selling for gains sometime today. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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