Add EOG Calls
Plus: Sell HALF of MOO
PLAY: Buy the EOG November 95 Calls (EOG KS) at or under $3.60, good for the day. Place a protective stop limit at $2.20 and a pre-determined sniper sell at $5.50.
Dear Bottarelli Research Member,
Leading into tomorrow’s agriculture earnings reports from POT and BG, I’d like to do a little tactical maneuvering. As you know, we entered the MOO November 41 Calls (MOO KO) yesterday for $1.80. In the agriculture sector, the recent trend is that companies like Mosiac (MOS – NYSE) report dismal earnings, but then their executives forecast stronger growth in 2010. As a result, investors pile into these names in anticipation of a 2010 turnaround, blasting the entire sector group higher.
Based on this trend, tomorrow’s earnings could keep the momentum in MOO rolling, as two fertilizer heavyweights are set to report. The risk, of course, is that this trend reverses. So here’s what I’d like to do…
First, let’s trim down our MOO exposure by selling half of the position at a slight gain. This way, you can still partake in any upside run, but minimize your exposure to a sell-off. Then, turn around and get positioned in EOG Resources (EOG – NYSE), which has been nothing short of a spectacular performer lately. As you can see below, EOG has been moving up a 45-degree angle, which is something I’d like to hop aboard right now. With the U.S. dollar hitting fresh lows today, the commodity-based trade in metals, oil, and energy remains in play. Plus, EOG’s November options contracts are priced right in our wheelhouse. Let’s ride it now!
PLAY: Buy the EOG November 95 Calls (EOG KS) at or under $3.60, good for the day. Place a protective stop limit at $2.20 and a pre-determined sniper sell at $5.50.
At the same time, continue hold your protective FAZ November 18 Calls (FEW KR). Let’s also roll the dice and maintain our AMZN November 100 Calls (QZN KT) leading into tomorrow’s after-the-bell earnings. If AMZN reacts anything like Apple, Google, or Yahoo, we’ll be in great shape.
And as always…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.
Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.
CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.