Take UNP Profits

Plus: Add DRYS Calls

By Bryan Bottarelli
Wednesday, July 23, 2008 10:59 AM EDT
Wed, 23 Jul 2008 14:59:00 GMT

PLAY: Sell your UNP August 75 Calls (UNP HO) at or above $4.30, good for the day.

PLAY: Buy the DRYS August 80 Calls (DQR HP) at or under $4.70, good for the day. Place a protective stop limit at $2.90 and a pre-determined sniper sell at $6.00.

Dear Bottarelli Research Member,

Shares of Union Pacific (UNP – NYSE) have opened today’s session with a nice $2.00 up-tick, this has pushed our UNP August 75 Calls (UNP HO) up to a high of $4.60, good for a nice 26% gain from our $3.62 entry price. Let’s go ahead and lock in these profits now!

UNP

PLAY: Sell your UNP August 75 Calls (UNP HO) at or above $4.30, good for the day.

At the same time, we’re also seeing a nice upside move in shares of Dryships (DRYS – NASDAQ).As you can see from the chart below, the world’s top dry bulk shipper has been stuck in a narrow range between $70.00 and $80.00 since early June, but I feel it’s only a matter of time before the stock makes an attempt to break out above its 50-day moving average at $85.00. Therefore, let’s play this possible upside move using August calls.

DRYS

PLAY: Buy the DRYS August 80 Calls (DQR HP) at or under $4.70, good for the day. Place a protective stop limit at $2.90 and a pre-determined sniper sell at $6.00.

And finally, shares of PCU just cannot get any sort of upside momentum. While I continue to feel that the shares are due for a substantial upside move (especially as we head into the seasonal fall bullishness for metals), our PCU August 30 Calls (PCU HF) have triggered our $1.40 stop loss, to this position is now closed.

PCU

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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