Option Investor
New Plays

New Plays

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PTR - $113.94 - Petrochina

We were not out of Petrochina very long before a sharp drop in China's indexes gave us a new entry on Monday at $110. We only have 1/2 position at present with a target of $105 to fill the other half. The breakout target has been cancelled.

Cost reduction play:

Sell the June 105 PUT PTR-RA with a touch of $110 by PTR. Set a stop loss at $100 on the short put.

Company Info:

PetroChina Company Limited operates a range of petroleum and related activities through four primary business segments: Exploration and Production Segment, Refining and Marketing Segment, Chemicals and Marketing Segment, and Natural Gas and Pipeline Segment. The activities include the exploration, development, production and sales of crude oil and natural gas; the refining, transportation, storage and marketing of crude oil and petroleum products; the production and sales of basic petrochemical products, derivative chemical products and other chemical products, and the transmission of natural gas, crude oil and refined products, and the sales of natural gas.

Breakdown targets:
$110 1/2 position - hit Mar-5th
$105 1/2 position - not yet triggered

Position: JAN-09 $120 LEAP Call ZJK-AD @ $10.70


CCJ - $37.23 - Cameco

CCJ dipped to $35.22 on Monday but failed to hit our breakdown target of $34. A strong rebound pushed it through the breakout trigger at $37.50 on Wednesday giving us our entry.

Company info:

Cameco Corporation (Cameco) is primarily engaged in the exploration for and the development, mining, refining and conversion of uranium for sale as fuel for generating electricity in nuclear power reactors in Canada and other countries. The Company has a 31.6% interest in Bruce Power L.P. (BPLP), which operates the four Bruce B nuclear reactors in Ontario. Cameco's 52.7% subsidiary Centerra Gold Inc. (Centerra) is involved in the exploration for and the development, mining and sale of gold. Cameco has four segments: uranium, fuel services, nuclear electricity generation and gold. In June 2006, the Company acquired a 19.5% interest in UNOR Inc

Cameco appears to have the Cigar Lake disaster under control and is taking steps to reopen the mine.


Breakout trigger: $37.50 Hit March 7th

Position: JAN-09 $40 LEAP Call ZBK-AH @ $7.80

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