The LEAPS Option Trader
105 W. Monument Street
Baltimore, MD 21201
Wednesday, July 21, 2004
Email – #180
** Lucent and Motorola Leading The Pack
Both Lucent (NYSE: LU) and Motorola (NYSE: MOT) reported earnings in the past 12 hours. And, both exceeded expectations for profits and revenues. In fact, Motorola is just tearing it up, on track to have the best year in its history. In the last quarter its revenues were up by 40% and operating earnings were up over 600%. This is not chump change – operating earnings were up to $800 million compared to $112 million at this time last year.
If it were not for the weak overall market, we would be booking profits right now with our option. But, we are not. In fact, we are losing money. There is too far to go to recover on this position. Sell your Motorola January 2006 $20 calls (WMA-AD).
Our cost in Lucent is quite low. We don’t need much of a move in the shares to make money on this one. In fact, it is still at our cost right now, with a much better forecast for the rest of the year. Continue to hold your Lucent calls.
Regards,
Karim Rahemtulla
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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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