Option Investor
New Plays
Printer friendly version
New Plays
Long Plays
Short Plays
APC None

New Long Plays

Anadarko Petrol. - APC - close: 43.11 change: -0.57 stop: 41.75

Company Description:
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2005, the company had 2.4 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. In August 2006, Anadarko acquired Kerr-McGee Corporation and Western Gas Resources, Inc. in separate transactions. (source: company press release or website)

Why We Like It:
If crude oil really has put in a bottom near the $50.00 level then we want to increase our exposure to the oil industry. Last night's news that the President wants to double the size of the strategic petroleum reserve should put a bottom under crude oil prices and that's good news for the oil sector. If you study APC's chart it looks like shares have found a bottom near the $40.00 level. Technical indicators have turned bullish on the bounce but we see short-term resistance near $44.00. Tonight we're going to suggest that readers use a trigger at $44.05 to buy the stock. If triggered our target is the $47.50-48.00 range. However, we would also look for a dip and a bounce near $42.00 and its simple 10-dma as an alternative entry point to buy APC. We do not want to hold over February 5th earnings report. If we had more time we'd aim for the $50 level.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/05/07 (confirmed)
Average Daily Volume: 4.9 million


Raymond James - RJF - close: 32.19 chg: +0.74 stop: 30.95

Company Description:
Raymond James Financial is proud of its history. Founded in 1962, we are now one of the largest financial services firms in the United States, with 2,200 locations worldwide.
(source: company press release or website)

Why We Like It:
RJF reported earnings this morning that were three cents better than Wall Street expected. Revenues jumped almost 15%. The positive results helped send the stock to a 2.3% gain and a bullish breakout over resistance near $32.00. Short-term and longer-term technical indicators for RJF are turning or they have already turned bullish. The XBD broker-dealer index is also showing plenty of strength, which gives RJF a nice tail wind. We see the rally past $32.00 as a new entry point. Conservative traders might want to exit near the November highs around $33.60. We are aiming for the $34.75-35.00 range.

Picked on January 24 at $32.19
Change since picked: + 0.00
Earnings Date 01/24/07 (confirmed)
Average Daily Volume: 328 thousand

New Short Plays


Premier Investor New Play Archives