Option Investor
New Plays

New Option Plays

Printer friendly version
Call Options Plays
Put Options Plays
NX None

New Calls

Quanex - NX - close: 54.75 change: +1.30 stop: 52.45

Company Description:
Quanex is an industry leading manufacturer of value-added engineered materials and components for the vehicular products and building products markets. (source: company press release or website)

Why We Like It:
NX is a simple buy the breakout play. The stock soared back in 2004 and topped out near $63 back in March 2005. Since then shares of NX have consolidated its gains. The recent trading range between $46 and $55 might be considered a new base for NX to build on its next leg higher. The breakout we want to buy is a breakout over the $55.00 level. If NX can push past the $55.00 mark it will produce a new quadruple-top breakout buy signal on its Point & Figure chart. These types of patterns can be very powerful, especially if the market cooperates. More aggressive traders might want to consider buying calls here with today's move over the $54.00 level. We're going to suggest a trigger at $55.10. Our target will be the $59.50-60.00 range although it would not surprise us to see NX rally toward its peak near $63. We do not plan on holding past its August earnings date. 

Suggested Options:
We are suggesting the August calls although Novembers are also available.

BUY CALL AUG 50.00 NX-HJ OI= 10 current ask $5.90
BUY CALL AUG 55.00 NX-HK OI= 85 current ask $2.70
BUY CALL AUG 60.00 NX-HL OI= 15 current ask $1.00

Picked on July xx at $ xx.xx <-- see Trigger
Change since picked: + 0.00
Earnings Date 08/25/05 (unconfirmed)
Average Daily Volume = 337 thousand 

New Puts

None today.

New Play Archives