Option Investor
New Plays
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
BJS None
DNR  
NFX  
ZEUS  

New Long Plays

BJ Servies - BJS - close: 29.51 change: +0.53 stop: 28.99

Company Description:
BJ Services Company is a leading provider of pressure pumping and other oilfield services to the petroleum industry. (source: company press release or website)

Why We Like It:
The oil sector appears to have produced a bottom over the last few weeks. The group was definitely oversold by mid September. Now we're seeing signs of a rebound. Shares of BJS broke out over some minor resistance on Friday and the technical indicators are turning positive. We are suggesting that readers go long the stock with a trigger to open positions at $30.55. Our trigger is above the early October high near $30.50. If triggered our target is the $33.50-34.00 range. We do not want to hold over the October 31st earnings report. FYI: The P&F chart is still bearish. Be advised that BJS is an oil services company and the oil services sector tends to be more volatile than the rest of the oil sector.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/31/06 (confirmed)
Average Daily Volume: 5.5 million

---

Denbury Resources - DNR - cls: 29.27 chg: +0.77 stop: 27.99

Company Description:
Denbury Resources Inc. (www.denbury.com) is a growing independent oil and gas company. The Company is the largest oil and natural gas operator in Mississippi, owns the largest reserves of CO2 used for tertiary oil recovery east of the Mississippi River, and holds key operating acreage in the onshore Louisiana and Texas Barnett Shale areas. (source: company press release or website)

Why We Like It:
Shares of DNR have produced bottoming pattern over the last few weeks and now shares are breaking out higher. Most of the technical indicators are turning higher. More aggressive traders might want to consider long positions now with Friday's move past the exponential 200-dma or on a dip back toward $28.50. We want to see a bit more confirmation since DNR has resistance near $30.00 where its 200-dma and 50-dma are converging. We're suggesting traders use a trigger to open positions at $30.26. If triggered our target is the $33.00-34.00 range. We do not want to hold over the early November earnings report.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/01/06 (unconfirmed)
Average Daily Volume: 826 thousand

---

Newfield Expl. - NFX - close: 39.30 chg: +0.95 stop: 37.99

Company Description:
Newfield Exploration Company is an independent crude oil and natural gas exploration and production company. (source: company press release or website)

Why We Like It:
NFX is another bullish candidate from the oil sector. The stock has produced a bullish double-bottom pattern that has become pretty common in the oil stocks recently. Friday's relative strength and breakout over $39.00 looks tempting but we want to see NFX breakout over resistance at the $40.00 level before initiating long positions. We're suggesting a trigger to buy the stock at $40.26. If triggered our target is the $44.00-45.00 range. We do not want to hold over the October 26th earnings report.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume: 1.6 million

---

Olympic Steel - ZEUS - close: 27.34 change: +0.90 stop: 25.95

Company Description:
Founded in 1954, Olympic Steel is a leading U.S. steel service center focused on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel products. Headquartered in Cleveland, Ohio, the Company operates 16 facilities. (source: company press release or website)

Why We Like It:
It looks like the selling in ZEUS has run its course. The stock has appeared to produce a bottom over the last month and now shares are starting to breakout higher. Technical indicators are definitely improving although the P&F chart looks like it will be bearish for a while yet. We like the bounce from short-term support at $26.00 on Friday. We're suggesting long positions with ZEUS above $27.00. Our target is the $29.90-30.00 range, which is where we expect the stock to encounter resistance with its 200-dma and 100-dma. We do not want to hold over the October 26th (unconfirmed) earnings report.

Picked on October 15 at $27.34
Change since picked: + 0.00
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume: 205 thousand
 

New Short Plays

None today.
 

Premier Investor New Play Archives