Betting on Brazil and Locking in a 57% Options Gain

This week’s Momentum Trader Alert takes you to an overseas stock market with big upside potential: Brazil.

As Brazil emerges from a two-year recession, it is attracting the attention of many investors who are shifting more of their assets away from the U.S. stock market in favor of foreign stocks. With Brazil’s economic activity increasing at its highest pace in the past eight years last month, significant momentum is returning to the Brazilian stock market.

This week’s Momentum Trader Alert is Ultrapar Participacoes S.A., (UGP), one of the largest distributors of liquefied petroleum gas in Brazil. The company is also engaged in the storage and transportation of other petrochemical and chemical products.

Ultrapar Participacoes S.A., (UGP) versus the S&P 500 over the last three months.

Momentum Trader Alert Analysis

Recommendation

Buy Ultrapar Participacoes S.A. (UGP) at market today and place your stop at $21.50.

There are no liquid options on this stock.

Portfolio Update

With your Broadcom (AVGO) July $210 calls options (AVGO170721C00210000) up 57.80%, sell half of your options here to lock in these double-digit-percentage gains.

Hold on to the rest of the options for now for potentially bigger gains between now and July.

Sincerely,

Nicholas A. Vardy

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.  

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