Two Powerful New Calls

FSLR and FMCN Look Primed for More

By Bryan Bottarelli
Thursday, May 10, 2007 10:52 AM EDT
Thu, 10 May 2007 14:52:00 GMT

Dear Bottarelli Research Member,

I have two new call trades that could quickly pay off. If you enjoy the quick-hit winners, then these two are especially for you.

First up is First Solar (FSLR – NASDAQ), the maker of solar electric power modules. They just reported strong Q1 results that came in a $5 million profit versus a loss of $5.9 million a year before — beating the expectation of a break-even quarter. At the same time, FSLR boosted its full-year revenue outlook to $370 and $400 million, up significantly from prior guidance between $300 million and $340 million. On the heels of this news, FSLR is popping — check it out:

FSLR

With solar stocks red-hot right now, let’s play this upside momentum for all it’s worth. I’m looking for a quick trade here — so if you’d like to play alongside this powerful upside momentum play, here’s the trade:

PLAY: Buy the FSLR June 70 Calls (QHB FN) at or under $6.60, good for the day. Current bid/ask spread is $6.20 to $6.40. Place a protective stop limit at $3.70.

Also breaking out of its recent range is Focus Media Holding (FMCN – NASDAQ). The Chinese audiovisual display firm reports earnings on May 17th, and it looks like we’re seeing an upside push leading up this announcement. Similar to FSLR, let’s play this upside momentum using June calls. Here’s the play:

FMCN

PLAY: Buy the FMCN June 40 Calls (QOH FH) at or under $2.00, good for the day. Current bid/ask spread is $1.80 to $1.90. Place a stop limit at $0.80.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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