Buckle Up on ICE

Maintain Calls Into Tomorrow

By Bryan Bottarelli
Monday, August 03, 2009 3:34 PM EDT
Mon, 3 Aug 2009 19:34:00 GMT

Dear Bottarelli Research Member,

As we close in on the final 30 minutes of trading, we have seen a slight up-tick in shares of Intercontinental Exchange (ICE – NYSE) leading into tomorrow morning’s before-the-bell earnings report. As I write, the ICE August 100 Calls (IHH HT) that we entered on July 30th for $4.20 have traded as high as $3.70.

ICE

When it comes to earnings reports, it’s anyone’s guess as to how the markets will respond. With expectations so low, ICE could easily trade higher on marginal results. They could also sell off on strong results. Watching how Wall Street has reacted to previous earnings reports, it’s a coin flip. But given this situation, I’m inclined to buckle up and hold onto the calls. You may consider selling half of your position now, and then holding the remaining half into tomorrow’s earnings. It all depends on your level of risk. Either way, let’s maintain some upside exposure going into tomorrow, and see if ICE can hand us a nice earnings-based pop. As always, I’ll keep you fully informed. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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