MRO to Test $102.50

Play Calls as MRO Reaches for New High

By Bryan Bottarelli
Wednesday, April 25, 2007 12:03 PM EDT
Wed, 25 Apr 2007 16:03:00 GMT

Dear Bottarelli Research Member,

We’ve had a solid morning of trading — with very nice gains in STP and equally nice upside moves in CMC, APC, EEM, and PEG. So why stop now? As I write, we’re witnessing an upside move in Marathon Oil (MRO – NYSE) that leads me to believe that the stock will soon be testing — and breaking through — its recent high of $102.50.

MRO

As you can see by today’s chart, the stock is rallying in advance of their May 1st earnings announcement — so let’s make a quick momentum play on the continued upside move in MRO. Here’s the trade:

PLAY: Buy the MRO June 100 Calls (MRO FT) at or under $5.50, good for the day. Current bid/ask spread is $5.20 to $5.30. Place a protective stop loss at $3.10.

And while you’re at it, let’s go ahead and lock in another quick winner on our APC June 50 Calls (APC FJ). You entered these calls for $1.05 and they’re currently trading as high as $1.30. If they trade up to $1.40, that’s a 33% gainer, so let’s see if we can get these prices triggered sometime today.

APC

PLAY: Sell the APC June 50 calls (APC FJ) at or above $1.40, good for the day. If prices do not trigger, maintain the position into tomorrow.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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