Take MGM Put Profits

Then Add Puts on U.S. Steel (X – NYSE)

By Bryan Bottarelli
Wednesday, July 25, 2007 11:05 AM EDT
Wed, 25 Jul 2007 15:05:00 GMT

Dear Bottarelli Research Member,

Let’s offset the TIE and AGU trades by taking a really nice profit on MGM Mirage (MGM – NYSE). As expected, the stock is continuing to move lower after penetrating the critical 50-day moving average. This continued down-move has increased your MGM August 80 Puts (MGM TP) from $3.70 up to $5.30, good for a 43% gainer. Let’s lock in the profits now!

MGM

PLAY: Sell your MGM August 80 Puts (MGM TP) at or above $5.30, good for the day.

After locking in this gain, we have another put opportunity in shares of United States Steel (X – NYSE). As you can clearly see below, the stock broke below its 50-day moving average and has failed to bounce back — setting the table for a continued downside move. Let’s profit off this fall using August puts. Here’s the play:

X

PLAY: Buy the X August 105 Puts (X TA) at or under $5.30, good for the day. Current bid/ask spread is $4.90 to $5.20. Place a protective stop limit at $3.30.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

© 2012 CSR Group, LLC. All rights reserved. Published in USA.

Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.

CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.

Bottarelli Research alerts contain time-sensitive information, and are published and distributed to members with urgency. Because of this, not all published materials can be adequately proofread, and an occasional spelling or grammar error may exist.


Other Options Alerts From July 2007