Play POT Calls

Hold JEC, BA & FCX

By Bryan Bottarelli
Tuesday, October 09, 2007 12:38 PM EDT
Tue, 9 Oct 2007 16:38:00 GMT

Dear Bottarelli Research Member,

What can you say about DRYS? What a stock!

As you can see from the chart below, the stock continues to blast higher at a parabolic rate — meaning that we’re now officially locked into the trading tactic of buying this stock on any near-term dips. And most of all, congratulations on the great gains off your DRYS October 105 Calls (DQR JA).

DRYS

Also moving in our direction is the FCX November 110 Calls (FCX KB). After entering for $7.90 on October 5th, these calls have now broken into the black as FCX has gained strong upside momentum throughout the trading day. Hold for more gains.

FCX

Also moving in our direction is the JEC November 80 Calls (JEC KP) and the BA November 105 Puts (BA WA).We entered each position yesterday for $5.90, and they have each traded for highs of $6.30 and $7.10 in today’s session. Hold each for more gains.

JEC

In terms of new trades, it’s time once again to jump on the upside bandwagon of Potash of Saskatchewan (POT – NYSE). As you can see from the chart below, the stock is making a strong jump today off yesterday’s near term low of $104. This signals to me that the stock could take out a new 52-week high in the upcoming weeks, so let’s get positioned in November calls to ride this upside. Here’s the play:

POT

PLAY: Buy the POT November 115 Calls (PYP KC) at or under $6.00, good for the day. Current bid/ask spread is $5.60 to $5.80. Place a protective stop limit at $3.20.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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