Take UA Profits, Part II

Lock in Overnight Gainer, ATK Too!

By Bryan Bottarelli
Wednesday, August 22, 2007 10:20 AM EDT
Wed, 22 Aug 2007 14:20:00 GMT

Dear Bottarelli Research Member,

Let’s re-adjust our Under Armour (UA – NYSE) sale price just to ensure a winning trade. As I write, the UA October 65 Calls (UA JM) are trading between $8.20 and $8.40, so let’s try to get triggered for $8.10. Here’s the play:

PLAY: Sell your UA October 65 Calls (UA JM) at or above $8.10, good for the day.

And while we’re at it, let’s also lock in an overnight gainer on our ATK October 105 Calls (ATK JA).We entered them for $5.80, and with ATK stock up $1.58 in today’s trading, they’re now changing hands for $6.40. While this is certainly not a home-run winner, we need to be nimble in this market environment and lock in gainers as quickly as we can. Therefore, let’s take profits on this play as well.

PLAY: Sell your ATK October 105 Calls (ATK JA) at or above $6.40, good for the day.

At the same time, let’s maintain our downside put positions — because we all know that this market can turn on a dime. And we’ll want to have downside exposure if this happens.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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