Add ICE Calls

Increasing Upside Exposure

By Bryan Bottarelli
Tuesday, October 21, 2008 10:29 AM EDT
Tue, 21 Oct 2008 14:29:00 GMT

PLAY: Buy the ICE November 90 Calls (ICE KR) at or under $5.60, good for the day. Place a protective stop limit at $2.40 and a pre-determined sniper sell at $8.10.

Dear Bottarelli Research Member,

We’ve seen something today that I haven’t seen in quite a while. The pre-market futures, which were down over 200 points, have now erased all of their losses in less than 45 minutes of trading. This upside reversal has me thinking that we need to increase our upside exposure by adding another call. And once again, I’d like to take on this position in the form of Intercontinental Exchange (ICE – NYSE).

ICE

As you can see below, shares of ICE are on the verge of breaking through their 50-day moving average. This is a critical breakout move, simply because ICE has been unable to penetrate this level for over 6 months. If the stock can indeed bust through this level, we can see a rather aggressive move to the upside. Therefore, let’s get positioned to profit off this move using November 90 calls. Here’s the play!

PLAY: Buy the ICE November 90 Calls (ICE KR) at or under $5.60, good for the day. Place a protective stop limit at $2.40 and a pre-determined sniper sell at $8.10.

At the same time, maintain your WFT November 15 Calls (WFT KC) for more upside. And also maintain your DIA November 90 Puts (DAV WL) and your HIG November 30 Puts (HIG WZ) as downside protection.

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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