Play FCL Calls

A Quick Momentum Play

By Bryan Bottarelli
Tuesday, April 08, 2008 10:27 AM EDT
Tue, 8 Apr 2008 14:27:00 GMT

PLAY: Buy the FCL May 60 Calls (FCL EL) at or under $3.50, good for the day.

Dear Bottarelli Research Member,

After a momentary sell-off yesterday, sectors like coal, energy, and steel are once again screaming today. So while we continue to monitor the major market averages (paying close attention to whether or not the bulls buy this morning’s dip), we’re now presented with an opportunity to act immediately on Foundation Coal Holdings (FCL – NYSE).

FCL

As you can see below, the owner of 13 coal mines with 1.6 billion tons of proven and probable coal reserves is making a very strong bounce off its 50-day moving average. This signals to me that FCL has some strong upside momentum in the works, so let’s go ahead and add FCL calls to our ledger now!

PLAY: Buy the FCL May 60 Calls (FCL EL) at or under $3.50, good for the day. Place a pre-determined sniper sell at $4.40 and a protective stop limit at $2.10.

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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