Option Investor
New Plays
Click here to email James
Printer friendly version
New Plays
Long Plays
Short Plays
USB None

Play Editor's Note: Aggressive traders might want to check out JOYG and FCX. Both look very bearish. It wouldn't surprise me to see JOYG drop to the $36.00-35.00 zone. Unfortunately, the stock is so volatile that stop loss placement is a big challenge. FCX could drop to the $47.50 level.

New Long Plays

US Bancorp - USB - close: 36.68 change: +0.66 stop: 32.99

Company Description:
U.S. Bancorp, with $247 billion in assets, is the parent company of U.S. Bank, the 6th largest commercial bank in the United States. The company operates 2,542 banking offices and 4,895 ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. (source: company press release or website)

Why We Like It:
It looks like USB is going to be one of the huge banks that comes out of this financial crisis stronger than before. The stock has been able to maintain a bullish trend the last few weeks and shares are close to breaking out from their recent trading range. We are suggesting bullish positions now or on a dip near $35.00. The financials remain a very volatile sector so we're playing with a wide stop loss on USB. You might want to tighten your stop on Friday when gets close to the next congressional vote on the bailout plan. We're setting two targets. Our first target is $39.95. Our second target is $42.20. FYI: If no deal is approved on Friday - look out below for all the financials!

Picked on October 01 at $36.68
Change since picked: + 0.00
Earnings Date 10/21/08 (confirmed)
Average Daily Volume: 22.7 million

New Short Plays

None today.

Premier Investor New Play Archives