Take JCI Profits!

Lock in 22% Gainer

By Bryan Bottarelli
Monday, September 10, 2007 10:18 AM EDT
Mon, 10 Sep 2007 14:18:00 GMT

Dear Bottarelli Research Member,

Since tomorrow is the 6th anniversary of the attacks of September 11th, we might see some choppy trading over the next two sessions. When you have situations like this, it’s always a good idea to own a “safety” type of play, and that’s why I really like our upside play on Freeport-McMoRan Copper & Gold (FCX – NYSE).

FCX

FCX is one of 45 stocks identified by Goldman Sachs as having a high degree of exposure to overseas revenues. This means that FCX is positioned to sustain their upside momentum despite any coming “recessions” here in the U.S. Combine that revenue positioning with gold prices that continue to shoot to new highs, and our FCX October 90 Calls (FCX JR) continue to look good. Hold.

Also looking good this morning is our downside play on power solutions companyJohnson Controls (JCI — NYSE). As you can see, the stock continues to move down to test the $105 (and perhaps the $100 level), and this action has pushed your JCI October 110 Puts (JCI VB) up to a high of $6.50 in today’s trading. That’s a nice 22% gainer, so let’s go ahead and lock in our profits now!

JCI

PLAY: Sell your JCI October 110 Puts (JCI VB) at or above $6.40, good for the day.

On the same hand, our downside play in Moody’s (MCO – NYSE) looks strong too. The stock should be hitting a new 52-week low any day now, as the credit troubles have now expanded onto credit ratings-agencies. Your MCO September 50 Puts (MCO UJ) have traded as high as $5.90 today, so let’s hold for more gains.

MCO

And finally, we could have another put opportunity in Blue Nile (NILE – NASDAQ). The online retailer of diamonds and fine jewelry in the United States, the United Kingdom, and Canada has seen massive amounts of insider selling, and this move corresponds with the stock breaking below its critical 50-day moving average.

NILE

If this level proves to be a resistance point, you can expect a put play on NILE. When it’s time to strike, I’ll be ready with a new play. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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