A Morning Pop

AMX, WFR, WFT, VLO Updates

By Bryan Bottarelli
Tuesday, April 03, 2007 10:06 AM EDT
Tue, 3 Apr 2007 14:06:00 GMT

Dear Bottarelli Research Member,

I’ve received a handful of notes from fellow Charter Members saying that they entered the America Movil May 50 Calls (AMX EJ) for $2.20. As I mentioned yesterday, the stock is shooting higher — and today that upside momentum continues. As I write, AMX hit a new 52-week high at $51.01 and your calls have traded as high as $2.90. If you went ahead and entered this more speculative position, then go ahead and take your profits now!

AMX

PLAY: Sell your AMX May 50 Calls (AMX EJ) at or above $2.80, good for the day.

Another play making a move today is MEMC Electronic Materials (WFR – NYSE), only the move is to the downside. Although you won’t find the reason for the move in the news — briefing.com is reporting that Think Equity visited solar firms in China and they think prices for polysilicon will soften this year. To me, this looks like a momentary dip and a prime buying opportunity, so let’s go ahead and add to our WFR position now.

WFR

PLAY: Buy more WFR May 65 Calls (WFR EM) at or under $1.80, good for the day.

And finally, oil is retreating today — which is helping out our WFT May 45 Puts (WFT QI). Maintain your sell orders at $2.10, good for the week. At the same time, maintain your VLO May 65 Calls (VLO EM), as I’ll look to play the intra-day volatility using both the long and the short side.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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