Add BID Calls

Two Upside Triggers In Play

By Bryan Bottarelli
Friday, October 26, 2007 11:46 AM EDT
Fri, 26 Oct 2007 15:46:00 GMT

Dear Bottarelli Research Member,

First and foremost, congratulations on your profits this morning. The recent market environment has been rather difficult, but we’ve successfully navigated the storm and are coming out with profits in hand!

Going into next week, I think we’ll have a much friendlier market environment — which will lead to even more wining trades. After all, we have a Fed meeting on October 31st, and our current Fed chief has been very good to the markets (in terms of upside movements). With this backdrop, I’d like to refer to something that I wrote back on October 8th.

In an alert titled, “A Multitude of Candidates,” I noted that New York based auctioneer Sotheby’s (BID – NYSE) is having a big fall art sale from November 2nd to 7th, and the featured item at this sale will be Van Gogh’s The Fields (which could reportedly sell for upwards of $35 million). You better believe BID will love the commissions from this sale, and the “buzz” surrounding this auction could spark buying activity in BID stock leading into November.

BID

As you can see from the chart, BID has just established a near-term bottom at the $50.00 level and is now setting itself for another run at their 52-week high above $60.00. With two upside triggers occurring next week (the Fed announcement and the pending fall art auction) we could see BID break out to new high levels, let’s get positioned in to profit off this move now!

PLAY: Buy the BID November 55 Calls (BID KK) at or under $3.50, good for the day. Current bid/ask spread is $3.20 to $3.40. Place a protective stop limit at $1.90.

Also, continue to hold your NILE November 80 Puts (JWU WP). Even with today’s upside move, this position is holding its water. If we see any downside pressure, we’ll be taking our profits! Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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