New Option Plays, Tuesday, June 16, 2009 2:22:30 AM
|
test-Software, Fertilizer, and Oil Services-test
by James Brown
|
|
NEW DIRECTIONAL CALL PLAYS
TEST
Salesforce.com - CRM - close: 41.60 change: +0.00 stop: 39.95
Why We Like It:
CRM has recovered from its late May sell-off and shares are breaking out over resistance at $40.00. Broken resistance should now act as new support. I'm suggesting readers buy calls on the Friday bounce. Our first target is $44.90. Our second target is $49.00.
Suggested Options:
I am suggesting the July calls.
BUY CALL JUL 40.00 CRM-GH open interest=1141 current ask $3.30
BUY CALL JUL 45.00 CRM-GI open interest= 163 current ask .95
Annotated Chart:
Picked on June 13 at $ 41.60
Change since picked: + 0.00
Earnings Date 08/20/09 (unconfirmed)
Average Daily Volume = 2.8 million
Listed on June 13, 2009
Mosaic - MOS - close: 55.48 change: -0.85 stop: 53.45
Why We Like It:
The chemical-fertilizer names are growing stronger again. MOS appears to have broken out from a bull-flag pattern. The dip on Friday is a bullish entry point that allows for a relatively tight stop loss. Our first target is $59.90. Our second target is $64.00. We do not want to hold over the late July earnings.
Suggested Options:
I am suggesting the July calls.
BUY CALL JUL 55.00 MOS-GK open interest=3520 current ask $4.30
BUY CALL JUL 60.00 MOS-GL open interest=6210 current ask $2.20
Annotated Chart:
Picked on June 13 at $ 55.48
Change since picked: + 0.00
Earnings Date 07/22/09 (unconfirmed)
Average Daily Volume = 7.5 million
Listed on June 13, 2009
Schlumberger - SLB - close: 60.27 chg: -1.91 stop: 57.75
Why We Like It:
Strength in crude oil has lifted the oil service stocks to new relative highs. Both oil and oil services hit some profit taking on Friday. I'm suggesting readers buy calls on the dip in SLB. We can use a relatively tight stop loss limiting our risk. Our first target is $64.90. Our second target is $68.40.
Suggested Options:
I am suggesting the July calls.
BUY CALL JUL 60.00 SLB-GL open interest=5134 current ask $3.50
BUY CALL JUL 65.00 SLB-GM open interest=1371 current ask $1.50
Annotated Chart:
Picked on June 13 at $ 60.27
Change since picked: + 0.00
Earnings Date 07/24/09 (confirmed)
Average Daily Volume = 10 million
Listed on June 13, 2009
