Play MON Calls

Plus: Opportunities on FDG, HES, PCU, BNI, BG, and

By Bryan Bottarelli
Monday, April 21, 2008 3:00 PM EDT
Mon, 21 Apr 2008 19:00:00 GMT

PLAY: Buy the MON May 130 Calls (MFP EF) at or under $6.50, good for the day.

Dear Bottarelli Research Member,

Throughout the trading session, I’ve received a handful of nice momentum formations that indicate the continuation of today’s strong upside moves. Heading this list are companies like Fording Canadian Coal Trust (FDG – NYSE) and Hess Corporation (HES – NYSE). You can see each powerful chart below:

FDG

HES

I’ve also received three potential upside breakdown formations in Southern Copper (PCU – NYSE), Burlington Northern Santa Fe (BNI – NYSE), and Bunge (BG – NYSE), which means that all three of these stocks could experience strong upside days (like we’re seeing today on HES and FDG) later this week. You can see all three of these upside breakout formations below as well:

PCU

BNI

BG

We also have an interesting situation in shares of PetroChina. (PTR – NYSE), where the top Asian oil producer will begin receiving “an appropriate subsidy” by China’s Ministry of Finance to offset losses due to processing $117 crude — and in the process ensure ample supply of oil to Asia. While not much is being made of this in the press today, this subsidy will come in the form of a sharp reduction in taxes, and this could be the news event that signals a near-term bottom in PTR shares.

PTR

All of these plays represent opportunities that I’m following closely. But to be honest, the play that I’d like to make right now follows up on my commentary from this morning. If you recall, I made note of the runaway stock charts of the top fertilizer names like Potash (POT – NYSE), Mosiac (MOS – NYSE), and Agruim (AGU – NYSE).Now, we have a nice opportunity to play the Granddaddy of them all, Monsanto (MON – NYSE).

MON

As you can see from the chart, MON looks poised to extend upon its longer-tern upside trend — so I’d like to get positioned now for an upside breakout that would easily push shares over $130.00 in the blink of an eye. To profit off this upside move, let’s add the MON May 130 calls now. Here’s the play:

PLAY: Buy the MON May 130 Calls (MFP EF) at or under $6.50, good for the day. Place a protective stop limit at $3.00 and a pre-determined sniper sell at $7.90.

At the same time, continue holding your NVDA June 20 Calls (UVA FD).And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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