Taking the Safe Road on NYX

Lock in NYX Gains

By Bryan Bottarelli
Monday, February 04, 2008 3:31 PM EST
Mon, 4 Feb 2008 20:31:00 GMT

PLAY: Lock in partial profits on your NYX February 90 Calls (NYX BR)

Dear Bottarelli Research Member,

As we approach the close of today’s trading, it’s interesting to see the action on NYSE Euronext (NYX – NYSE). It’s clear that the NYX pit traders are increasing the premiums on the NYX February 90 Calls (NYX BR) leading into tomorrow morning’s earnings report, and this floor trading action is handing us a nice intra-day winner.

NYX

As you know, we entered these calls this morning when NYX stock was up $1.00, and we paid anywhere between $0.74 and $0.86 per contract. As the trading day is getting set to close, shares of NYX stock is still about $1.00 higher, but these same calls have traded as high as $1.00 and are looking to break past this $1.00 level by the close of trading. With a winner like this in hand prior to the announcement of earnings, it’s smart to lock in at least half of your profits. This is the safest play leading into the earnings announcement. That way, you lock in a gain — and you can still speculate on a big upside stock reaction come tomorrow. And if you’re even more concretive, you can go ahead and lock in your entire gain right now. Either way, make your trading decision depending on your level of risk tolerance, and as always:

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

© 2012 CSR Group, LLC. All rights reserved. Published in USA.

Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.

CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.

Bottarelli Research alerts contain time-sensitive information, and are published and distributed to members with urgency. Because of this, not all published materials can be adequately proofread, and an occasional spelling or grammar error may exist.


Other Options Alerts From February 2008