Take FCX Profits!

Add POT Calls

By Bryan Bottarelli
Wednesday, May 30, 2007 12:33 PM EDT
Wed, 30 May 2007 16:33:00 GMT

Dear Bottarelli Research Member,

First thing’s first: Let’s take some profits!

Freeport-McMoRan Copper & Gold (FCX – NYSE) is blasting up to a new 52-week high, and the FCX June 75 Calls (FCX FO) that we entered yesterday for $3.20 have traded as high as $2.90. That’s an overnight gain of 22%, so let’s take the money off the table now!

FCX

PLAY: Sell your FCX June 75 Calls (FCX FO) at or above $3.80, good for the day.

To replace this call position with further upside exposure, let’s enter a new play on Potash of Saskatchewan (POT — NYSE). The stock split 3:1 before the market open, which means that added liquidity could attract new investors unwilling to pay $200 per share. With the stock now trading for $70.31, I think we’ll see continued upside momentum — so let’s get positioned in July 70 calls.

POT

PLAY: Buy the POT July 75 Calls (PVZ GN) at or under $4.30, good for the day. Current bid/ask spread is $3.90 to $4.10. Place a protective stop limit at $2.10.

Also looking good is your WFT July 55 Calls (WFT GK), so maintain this upside position for more gains.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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