The LEAPS Option Trader
105 W. Monument Street
Baltimore, MD 21201
Wednesday, February 9, 2005
Email – #230
** UT Starcom Right on Target
UT Starcom (Nasdaq: UTSI) reported earnings after the close last night. They were on target and the guidance was good. The shares jumped to $16.50 and then closed in the mid-$15 range, where they should open today.
Based on the numbers, the shares should head higher. The target exit date for this option should be no more than three months away – when the company announces its results for the first quarter. The market will be anticipating that the company will beat earnings since it has left room for an upside surprise.
Continue to hold your options and watch your stops. While the shares are up now, the current market is fickle and this is a very volatile stock/option.
Regards,
Karim Rahemtulla
Bio:
Karim Rahemtulla is the former Investment Director of The Oxford Club. The editor of The Smart Options E-Report, The Income Trader – A Covered Call Strategy and The LEAPS Option Trader, Karim is also a regular contributor to The Oxford Club Communiqué. His highly successful trading systems use covered calls and LEAPS to boost returns on blue chip stocks, and during the bear markets of 2000 and 2001, his picks outperformed the major market averages. Educated in England, Canada and the U.S. and fluent in several languages, Karim travels the world to find the best investment opportunities for our members.
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