Take AGU Profits

Lock in Quick Gainer

By Bryan Bottarelli
Monday, February 25, 2008 11:10 AM EST
Mon, 25 Feb 2008 16:10:00 GMT

PLAY: Sell your AGU March 75 Calls (AGU CO) at or above $2.90, good for the day.

PLAY: Buy the RIG March 145 Calls (RIG CI) at or under $2.70, good for the day.

Dear Bottarelli Research Member,

In a market like this one, we must remain extremely nimble and extremely reactionary. In other words, we’ll keep our positions light, our profits quick, and our ledger balanced. So in that spirit, let’s use this 100-point advance on the Dow to lock in a 20% gainer on our AGU March 75 Calls (AGU CO).As you know, we entered these calls last week for $2.50 and they’ve just traded as high as $2.95 in today’s action. That’s good for a 18% gainer, so let’s go ahead and lock this profit in now!

AGU

PLAY: Sell your AGU March 75 Calls (AGU CO) at or above $2.90, good for the day.

At the same time, let’s replace these AGU calls with a new upside play on Transocean, (RIG – NYSE). Last week, the world’s top oil driller received an upgrade from Goldman, and the stock looks poised to make another upside run at the $150 level. Therefore, let’s enter March 145 calls now!

RIG

PLAY: Buy the RIG March 145 Calls (RIG CI) at or under $2.70, good for the day. Place a protective stop limit at $1.40. Place a sniper sell order at $3.20.

And just to maintain our downside exposure, continue to hold your PTR March 140 Puts (PTR OH) and your NILE March 40 Puts (JWU OH) for a mid-day reversal. And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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