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AHC None

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Amerada Hess - AHC - close: 86.65 chg: +2.10 stop: 82.00

Company Description:
Amerada Hess, headquartered in New York, is a global integrated energy company engaged in the exploration for and the production, purchase, transportation and sale of crude oil and natural gas, as well as the production and sale of refined petroleum products. (source: company website)

Why We Like It:
Oil stocks continue to be areas of strength in the market and the OSX oil services index is trading near all-time highs. Meanwhile crude oil prices rose more than two percent on Monday as traders bought the dip to $46.00 and its 50-dma. We like AHC because shares are breaking out over its four-month trendline of resistance formed by its lower highs. Plus, its P&F chart shows a new triple-top breakout buy signal with a $103 target. We want to use the move over $86 as an entry point and target a move to its October highs near $94.

Suggested Options:
We are going to suggest the March and May calls.

BUY CALL MAR 85 AHC-CQ OI= 208 current ask $4.10
BUY CALL MAR 90 AHC-CR OI= 327 current ask $1.65

BUY CALL MAY 85 AHC-EQ OI=1066 current ask $6.00
BUY CALL MAY 90 AHC-ER OI= 488 current ask $3.50


 

Picked on January 31 at $ 86.65
Change since picked: + 0.00
Earnings Date 01/26/05 (confirmed)
Average Daily Volume = 1.2 million

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