One End of Day Play

Add CHK Calls Now

By Bryan Bottarelli
Wednesday, April 09, 2008 3:42 PM EDT
Wed, 9 Apr 2008 19:42:00 GMT

PLAY: Buy the CHK May 47.5 Calls (CHK ES) at or under $3.50, good for the day. Place a pre-determined sniper sell at $4.20 and a protective stop limit at $2.10.

Dear Bottarelli Research Member,

Its’ been a rather un-eventful market day, as the major market averages have drifted slowly lower throughout the session. But despite all the weakness, the two sectors that are strong today are oil servers (like RIG, WFT, and DO) and energy (like APA). Since most of these names have come off their highs heading into the close, I’d like to make a quick end-of-day trade that allows us to profit off any further upside going into May. And today’s stock candidate comes in the form of Chesapeake Energy (CHK – NYSE).

CHK

As you can see, CHK is on the verge of breaking out to a new 52-week high, so let’s add the CHK May 47.5 Calls (CHK ES) to our ledger now and profit off a pending upside breakout. Here’s the play:

PLAY: Buy the CHK May 47.5 Calls (CHK ES) at or under $3.50, good for the day. Place a pre-determined sniper sell at $4.20 and a protective stop limit at $210.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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