Take GMCR and SHLD Profits
Plus: GG and CF Updates
PLAY: Sell your GMCR April 90 Calls (O:GMCR 10D90.00) at market, good for the day.
PLAY: Sell your SHLD April 100 Calls (O:SHLD 10D100.00) at market, good for the day.
Dear Bottarelli Research Member,
Good morning. We’ve got a lot of action here in the early going, so let’s get right to it. First and foremost, the GMCR April 90 Calls (O:GMCR 10D90.00) that we entered yesterday for $5.10 have now hit a high of $6.20, good for a quick 21% gain. Let’s lock in these profits now!
PLAY: Sell your GMCR April 90 Calls (O:GMCR 10D90.00) at market, good for the day.
Not to be outdone, the SHLD April 100 Calls (O:SHLD 10D100.00) that we entered yesterday for $4.40 have now ticked up to $5.80, good for another quick 31% gainer. Let’s lock in these profits as well!
PLAY: Sell your SHLD April 100 Calls (O:SHLD 10D100.00) at market, good for the day.
On the earnings front, Goldcorp (GG – NYSE) said that their Q4 profit more than doubled, which benefited from higher gold, silver, and copper prices. Earnings came in at $182.7 million ($0.25 per share) versus $84.4 million ($0.12 per share) one year earlier. Since analysts polled by Thomson Reuters expected a profit of $0.24, GG beat their numbers. Thus far, we’ve seen a muted reaction, so let’s hold our GG April 40 Calls (O:GG 10D40.00) and GG April 39 Puts (O:GG 10P39.00) to see which direction GG wants to move.
Then we have CF Industries (CF – NYSE), which is dipping on the news that Norwegian fertilizer group Yara International has decided to raise their bid for Terra Industries.
As a quick review, Yara agreed last month to buy Terra for $4.1 billion (creating the world’s biggest mineral fertilizer producer), but then Terra agreed to accept a “superior” $4.68 billion takeover bid from rival CF Industries. Now that Yara had decided not to boost their offer, it looks like Terra will be owned by CF. I’m not sure why this would be negative news for CF, but this looks like a news-driven dip. If the $95.00 level holds as support for CF, then we could see a reversal. But since this dip has blasted through our stop, we’re forced to close this position out now. We’ll revisit this one at a later date. But for now, close off the position. Sell.
NOTE: Considering the great news from POT today, the fertilizer sector is still one that we’ll want to play going forward. I’ll continue to monitor this sector for opportunities.
Lock and load!
Sincerely,
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