Two New Calls

Play GS and EXM Calls Now!

By Bryan Bottarelli
Friday, May 02, 2008 10:36 AM EDT
Fri, 2 May 2008 14:36:00 GMT

PLAY: Buy the EXM June 45 Calls (EXM FI) at or under $2.90, good for the day.

PLAY: Buy the GS May 210 Calls (GPY EB) at or under $2.30, good for the day.

Dear Bottarelli Research Member,

With the markets extending upon the morning gains at their critical technical levels, I’d like to jump into two market sectors which have been exceptionally strong lately: Shipping and Financials.

Starting with shipping, I’ve mentioned before that the Dow Transports have been setting a series of new 52-week highs (notably UNP and BNI). But an even more powerful sector comes via Dry Bulk Shipping. As the leader in the group, Dryships (DRYS – NASDAQ) has been on an impressive upside run in the month of April. But not many traders recognize Excel Maritime Carriers (EXM – NYSE) as another important shipper of iron ore, coal and grains, bauxite, fertilizers, and steel. Chart-wise, EXM looks poised to bounce back above its 200-day moving average. The call options are very reasonably priced, so let’s go ahead and establish an upside play on EXM now!

EXM

PLAY: Buy the EXM June 45 Calls (EXM FI) at or under $2.90, good for the day. Place a protective stop limit at $1.60, but since this is a June position, do not place a sniper sell at this time.

Also, as the dollar-rebound talk continues to gain more and more coverage, this is obviously a bullish catalyst for every bank and financial stock. And in my view, the undisputed leader in this group is Goldman Sachs Group (GS – NYSE).As you can see from the GS chart, the stock is currently making a strong move above its 200-day moving average, and this trend should continue into next week. Therefore, let’s establish a new upside position in GS as well!

GS

PLAY: Buy the GS May 210 Calls (GPY EB) at or under $2.30, good for the day. Place a protective stop limit at $1.30 and a pre-determined sniper sell at $3.00.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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