Take LEH Profits

Earnings Meet Expectations

By Bryan Bottarelli
Wednesday, March 14, 2007 9:30 AM EDT
Wed, 14 Mar 2007 13:30:00 GMT

Dear Bottarelli Research Member,

This morning Lehman Brothers (LEH – NYSE) reported a 6% increase in Q1 profit from year-ago levels. Their earnings came in at $1.96 per share — which is exactly what analysts polled by Thomson Financial had expected. Although the company did not address the subprime issue — it’s expected that LEH executives cover this topic later this morning.

In a market like this — meeting expectations is not going to provide an upside boost. And that’s why shares of LEH are trading lower by $1.26 in pre-market activity. Let’s go ahead and use this opening-session down-move to take profits off the table on our

LEH April 70 Puts (LES PN). We entered them yesterday for $2.55, so let’s sell them anywhere at or above $3.10, good for the day.

PLAY: Sell your LEH April 70 Puts (LES PN) at or above $3.10, good for the day.

Also maintain your $5.00 sell on your MRO April 95 Puts (MRO PS) and see if that gets triggered this morning. Until then…

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 March 2007