Playing a Holiday-Interrupted Week

Play POT & PCP, Plus CLF Follow-Up

By Bryan Bottarelli
Monday, July 02, 2007 10:24 AM EDT
Mon, 2 Jul 2007 14:24:00 GMT

Dear Bottarelli Research Member,

I’d like to keep the trading light leading up to the 4th of July on Wednesday.

Having said that, I do have two new plays have just become available — so let’s get positioned! The first play comes in the form of Potash of Saskatchewan (POT – NYSE).

POT

As I mentioned last week, all signs point to POT breaking above its recent high at $80.85, and I honestly don’t expect to see much selling leading up to the company’s August 9th dividend distribution. Let’s ride this upside momentum in the form of August calls. Here’s the play:

PLAY: Buy the POT August 80 Calls (PVZ HP) at or under $4.70, good for the day. Set a protective stop limit at $3.10.

Also setting a bullish formation today is Precision Castparts (PCP – NYSE). The supplier of metal components for aerospace, power generation, and automotive markets is setting a new 52-week high at $124.36 and looks to move even higher in the weeks that follow.

PCP

Let’s capitalize on this momentum using the PCP August 25 Calls. Here’s the play:

PLAY: Buy the PCP August 125 Calls (PCP HE) at or under $4.70, good for the day. Set a protective stop limit at $3.10.

Also, for anyone still holding the Cleveland-Cliffs July 80 Calls (CLF GP), the stock is up again today and these calls have traded as high as $2.85 per contract.

CLF

If you’re showing a profit, be sure to take your money and run!

Lock and load

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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