Option Investor
New Plays
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New Plays
Long Plays
Short Plays
ALL None
CPX  
GRP  
NTG  

Play Editor's note: We are adding more oil stocks to the newsletter as bullish candidates. Instead of trying to trade all of the oil stocks presented we would only select the ones you feel most comfortable with.


New Long Plays

AllState - ALL - close: 64.88 change: +0.35 stop: 63.49

Company Description:
The Allstate Corporation is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate" slogan, Allstate helps individuals in approximately 17 million households protect what they have today and better prepare for tomorrow through approximately 14,100 exclusive agencies and financial professionals in the U.S. and Canada. (source: company press release or website)

Why We Like It:
The IUX Insurance index is hitting new multi-year highs. Contributing to the sector's strength is ALL, which is flirting with its own record highs. The stock has a bullish trend of higher lows and the technicals have turned bullish or they are very close to producing a new bullish buy signal. Currently shares of ALL are trading under resistance at the $65.00 level. We are suggesting a trigger to buy the stock at $65.25. If triggered then our target is the $69.00-70.00 range. The P&F chart is bullish and points to a $69 target.

Picked on December xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/31/07 (unconfirmed)
Average Daily Volume: 2.4 million

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Complete Prod. - CPX - close: 22.26 chg: +0.33 stop: 21.49

Company Description:
Complete Production Services, Inc. provides drilling, completion and production services and products to the oil and gas industry in many of the most active basins throughout North America. (source: company press release or website)

Why We Like It:
After breaking out over significant resistance back in November shares of CPX consolidated sideways. The pattern turned into a neutral pennant-shaped pattern of higher lows and lower highs. Today's rally in crude oil helped CPX finally breakout from its consolidation. We are suggesting long positions with CPX above $22.00. We do expect some resistance near $23.15 but our target is the $24.50-24.75 range.

Picked on December 14 at $22.26
Change since picked: + 0.00
Earnings Date 11/01/06 (confirmed)
Average Daily Volume: 373 thousand

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Grant Prideco - GRP - close: 44.51 chg: +0.95 stop: 42.69

Company Description:
Grant Prideco, headquartered in Houston, Texas, is the world leader in drill stem technology development and drill pipe manufacturing, sales and service; a global leader in drill bit technology, manufacturing, sales and service; and a leading provider of high-performance engineered connections and premium tubular products and services. (source: company press release or website)

Why We Like It:
GRP is another oil services stock that is breaking out higher after a week of consolidating. Short-term technical indicators are turning positive and its P&F chart is already bullish. We are suggesting longs with the stock's breakout over the 10-dma near $44.00. More conservative traders may want to wait for a new relative high above $45.32 before starting positions. Our target is the $47.50-48.00 range.

Picked on December 14 at $44.51
Change since picked: + 0.00
Earnings Date 02/05/07 (unconfirmed)
Average Daily Volume: 2.2 million

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NATCO - NTG - close: 35.93 change: +0.85 stop: 34.65

Company Description:
NATCO Group Inc. is a leading provider of wellhead process equipment, systems and services used in the production of oil and gas. NATCO has designed, manufactured and marketed production equipment and services for nearly 80 years. NATCO production equipment is used onshore and offshore in most major oil and gas producing regions of the world. (source: company press release or website)

Why We Like It:
NTG is another oil service play. The OPEC production-cut news and rally in crude oil helped NTG rise 2.4% today. Short-term technicals are starting to turn bullish again as NTG flirts with a breakout from its six-week consolidation pattern. Aggressive traders might want to open positions now. We're a little worried about the lack of volume behind today's move. We are suggesting a trigger to buy the stock at $36.51. If triggered our target is the $39.85-40.00 range.

Picked on December xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/01/06 (confirmed)
Average Daily Volume: 228 thousand
 

New Short Plays

None today.
 

Premier Investor New Play Archives