Take POT Profits!

Plus TSO, AMZN, SPY and WFR

By Bryan Bottarelli
Wednesday, May 02, 2007 1:55 PM EDT
Wed, 2 May 2007 17:55:00 GMT

Dear Bottarelli Research Member,

Like I mentioned this morning — I’m skeptical about the market’s upside, but I’m certainly not opposed to profit off it. This thesis triggered two new call plays this morning, one on MEMC Electronic Materials (WFR – NYSE) and the other on Potash of Saskatchewan (POT – NYSE). While I’d like to maintain the WFR play, POT is absolutely shooting to the upside and I’d like to take our quick and painless profits off the table!

POT

As you can see by the chart, POT is an absolute beast (aka, a great upside stock) that could find support here and move all the way up to $200. But for the context of a big market up-day, I’d like to take the money and run. We can always re-enter on any dips.

PLAY: Sell your POT May 185 Calls (PVZ EQ) at or above $4.15, good for the day.

Also moving in our direction is the AMZN June 60 Puts (ZQN RL). If the stock can finally adhere to the laws of gravity and fall, we’ll have another big winner on our hands.

AMZN

Plus, don’t forget to take you profits on the TSO June 130 Calls (TSO FF). They’ve now traded as high as $4.53 on the day, so lock in that gainer on this one as well!

Plus, I’m very close to adding to our protective SPY June 150 Puts (SYH RT). If the market turns tail and moves lower, we’ll want to be protected. These SPY June puts offer you a great way to maintain protected against a sell off of sizable magnitude, so look to buy more puts very soon. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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