Take NILE Profits

Plus, Watch DRYS

By Bryan Bottarelli
Wednesday, October 31, 2007 10:14 AM EDT
Wed, 31 Oct 2007 14:14:00 GMT

Dear Bottarelli Research Member,

As we head into this afternoon’s Fed meeting, let’s lock in profits in our Blue Nile (NILE – NASDAQ) position. After all, if the market rallies on the Fed news, the profits we currently have could quickly evaporate, so let’s lock them in now. Specifically speaking, the NILE November 80 Puts (JWU WP) that we entered on October 25th for $6.90 have traded as high as $8.30 in today’s trading, good for a respectable 20% gainer. Let’s take these profits off the table now!

NILE

PLAY: Sell your NILE November 80 Puts (JWU WP) at or above $7.80, good for the day.

*NOTE: While I still feel that NILE could fall, we must be nimble on Fed day — and the most prudent action here is to lock in these gains now!

Also, let’s continue to monitor DryShips (DRYS – NASDAQ). The stock closed down a whopping $22 yesterday on over-blown concerns of day-rate pricing, which to me looks like a textbook knee-jerk reaction.

DRYS

As you can see, the stock is back up $6.00 today, and I’d like to add calls if the Fed sparks a market rally. Stay tuned — and as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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