Two New Calls

Play FCX and AGU Now!

By Bryan Bottarelli
Thursday, July 19, 2007 10:11 AM EDT
Thu, 19 Jul 2007 14:11:00 GMT

Dear Bottarelli Research Member,

When you combine yesterday’s strong intra-day reversal with today’s opening session pop, it’s clear that the bulls are not giving up anytime soon. Therefore, it’s a good idea for us to beef up our upside position — and today’s alert highlights two stocks that have been very strong and appear to be on the verge or breaking even higher.

The first company comes in the form of Freeport-McMoRan Copper & Gold (FCX – NYSE). Based in Phoenix Arizona, FCX has 2,813,089 metric tons of worldwide proven and probable reserves of copper, gold, and silver, and a quick look at the chart signals that the stock will soon be trading for over $95 per share — on its way up to $100. Let’s ride this upside using August calls.

FCX

PLAY: Buy the FCX August 95 Calls (FCX HS) at or under $5.50, good for the day. Place a protective stop limit at $3.30.

The second company comes in the form of Agrium (AGU – NYSE). The worldwide agricultural nutrient and fertilizer firm is rallying off the same strong upside catalyst as Potash of Saskatchewan (POT – NYSE), and the AGU chart signals that the stock is on the verge of an upside breakout. Let’s play the move using August calls.

AGU

PLAY: Buy the AGU August 45 Calls (AGU HI) at or under $3.70, good for the day. Place a protective stop limit at $2.00.

Also, I tried to get cute and pick up the DVN August 80 Calls (DVN HP) yesterday on the cheap, but our $4.00 price never officially triggered. Although the stock is still showing upside tendencies, let’s cancel this order — at least for now. We can always revisit it in the future. If you happened to enter this position yesterday, you’re most likely showing a slight gain, so go ahead and take the tiny winner and sell the position.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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