Time to Play ICE

Breakout Signals Further Upside Ahead

By Bryan Bottarelli
Wednesday, July 11, 2007 2:12 PM EDT
Wed, 11 Jul 2007 18:12:00 GMT

Dear Bottarelli Research Member,

As you very well know from past trading bulletins, one of the most powerful stocks you’ll ever see is InterContinental Exchange (ICE – NYSE). The company provides a platform to trade commodities like electricity, oil, gas and precious metals — and I’ve waiting for just the right signal to enter the next series of calls. Today this signal has officially triggered. As you can see from the chart below, ICE is making a powerful break-out of its current trading range and blasting up to a near-term high of $165, signaling more powerful upside moves lie ahead.

ICE

This breakout comes on the heels of them failing to disrupt the acquisition of the CBOT by the Chicago Mercantile Exchange — which now opens up the door for ICE to be a potential takeover target of their own. Within the publicly-traded exchange niche, takeover activity has been rampant. This year alone, for example, ICE bought the New York Board of Trade, the New York Stock Exchange acquired Euronext NV, and Germany’s Deutsche Borse agreed to buy International Securities Exchange. I fully expect this volatility and acquisition speculation to push ICE shares higher, so let’s establish a new upside call position now!

PLAY: Buy the ICE August 175 Calls (IHH HO) at or under $6.30, good for the day. Current bid/ask spread is $5.80 to $6.10. Place a protective stop limit at $3.10.

Also continue to hold your TSO August 62.5 Calls (TSO HU) and your SJM August 65 Puts (SJM TM), as each position is sitting at break-even and looking to hand you a near-term profit soon. It’s also time to dump our ITMN July 20 Puts (IQY SD). Like I’ve said before, the company’s dry product pipeline dictates that the shares shouldn’t trade anywhere over $10.00, but obviously the market thinks otherwise. Use any downside pressure to exit this position prior to July expiration.

*SPECIAL OFFER REMINDER: TICK TOCK: You only have two (2) trading days left to lock in our special 9-month Bottarelli Research extension! Remember, this offer expires Sunday July 15th, so be sure to click the link below and use your Bottarelli Research email and password access this special renewal page. Act now while it’s fresh in your mind!

https://www.bottarelliresearch.com/renew/?service=opt&offer=37Z5Q8W462

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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