An Aggressive Trade

Add ICE Calls

By Bryan Bottarelli
Thursday, August 09, 2007 10:40 AM EDT
Thu, 9 Aug 2007 14:40:00 GMT

Dear Bottarelli Research Member,

Within the last hour, the markets have stabilized somewhat — trimming a 200-point loss into an 80-point loss. So if you’re up for it, I’d like to issue an aggressive trade for those “swing for the fence” traders. If you can stomach this market’s volatility, and you’re interested in using it to your advantage for a potential big winner, than this trade on InterContinental Exchange (ICE – NYSE) is especially for you.

ICE

ICE operates an Internet-based electronic marketplace for trading crude oil, natural gas, sugar, cotton, coffee, cocoa, orange juice — plus foreign exchange and index products. With the recent volatility, you better believe that ICE has been experiencing record levels of trading volume — and that means increased commissions. As a result, the stock has been using this volatile market to move higher in recent action — and it now looks poised to make a run to the top of its recent trading range around $175. Let’s play this move using September calls. Here’s the play:

PLAY: Buy the ICE September 170 Calls (IHH IN) at or under $8.70, good for the day. Current bid/ask spread is $8.40 to $8.60. Place a protective stop limit at $4.00.

Lock and load

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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