Take AGU Profits
Lock in Strangle Winner
PLAY: Sell half of your AGU March 60 Calls (O:AGU 10C60.00) at market, good for the day. Hold the remainder for more upside.
Dear Bottarelli Research Member,
Good morning. Let’s start the day with some profits.
If you recall, we entered the basket of AGU March 60 Calls (O:AGU 10C60.00) and AGU February 55 Puts (O:AGU 10N55.00) for $4.00. Then, after reporting earnings yesterday that signaled a bottom in the fertilizer sector has been set, the stock moved higher. Therefore, we sold our puts for $0.25 and held onto our calls.
As I write, these calls have now moved up to a high of $4.50, which gives us an 18% total gain on our earnings strangle. From a chart perspective, AGU just peeked it’s head above the 50-day moving average, which is a positive sign. Plus, based on past earnings reactions (where AGU has moved up $8.00 to $10.00), we could see this one growing some legs. Since we have March expiration, I think it’s wise to hold onto our calls for more upside. But just in case you’d like to lock in some profits (and I certainly don’t blame you), let’s go ahead and lock in half of our profits now!
PLAY: Sell half of your AGU March 60 Calls (O:AGU 10C60.00) at market, good for the day. Hold the remainder for more upside.
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.