Play MA Calls

Plus, Add to FCX

By Bryan Bottarelli
Tuesday, October 23, 2007 9:55 AM EDT
Tue, 23 Oct 2007 13:55:00 GMT

Dear Bottarelli Research Member,

The U.S. markets are opening with strength across the board — thanks to strong earnings from NASDAQ component Apple (AAPL – NASDAQ) and Dow component American Express (AXP – NYSE).With such influential companies on both major exchanges reporting great numbers today, we could see a nice snap-back rally after Friday’s substantial decline. Here’s look at this morning’s Dow chart, and as you can see, this morning’s upside jump is just now peaking over the 50-day moving average. If this level proves to be support, this will be a fantastic entry level for calls.

INDU

Based on this strength, I want to remain a holder of our FWLT November 155 Calls (UFG KK) and our FCX November 115 Calls (FCX KC). In fact, I alluded to this yesterday, but I’d like to add to our FCX position now. The FCX calls are currently trading between $3.95 and $4.00 per contract, and they could be in for quite a ride if FCX can string a few strong trading days together. Looking at the stock’s chart, this is certainly possible, so let’s add to our position now!

FCX

PLAY: Buy more FCX November 115 Calls (FCX KC) at or under $3.90, good for the day.

I’d also like to add a new call position on Mastercard Incorporated (MA – NYSE). Today’s impressive 11% profit increase for American Express could be the trigger that pushes Mastercard above its 50-day moving average, so let’s get positioned to ride this pop using November calls. Here’s the play:

MA

PLAY: Buy the MA November 155 Calls (MAL KK) at or under $7.40, good for the day. Place a protective stop limit at $4.10.

Also, we have a long list of additional trading opportunities, and I’ll carefully release them when the timing is right. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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