Take LEH Profits

Lock in 15% Gainer

By Bryan Bottarelli
Tuesday, December 04, 2007 9:37 AM EST
Tue, 4 Dec 2007 14:37:00 GMT

Dear Bottarelli Research Member,

I’d like to give a big pat on the back for all of you who stuck with me on the LEH December 60 Puts (LES XL). As you know, we added to this position on November 28th and lowered our cost basis down to $3.30 on the puts. We executed this move during a week that saw the Dow tack on 700 points, and therefore, many traders out there questioned by logic.

But as expected, LEH is once again moving lower, thanks (in part) to a downgrade this morning from a JPMorgan Securities analyst. At the same time, LEH was also hit by a “sell” rating at Punk Ziegel, and this could re-ignite the downside bias across the brokerage sector. As expected, this bearishness has finally pushed your LEH put position into the black. As I write, your LEH puts have traded as high as $3.80, good for a 15% gainer. We could still see a lot more downside action throughout the day, but nevertheless let’s go ahead and lock in our profits now!

PLAY: Sell your LEH December 60 Puts (LES XL) at or above $3.80, good for the day.

Also, if you have yet to sell your FXI December 180 Puts (FVU XX), be sure to lock in profits on this position as well!

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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