Option Investor
New Plays

New Option Plays

HAVING TROUBLE PRINTING?
Printer friendly version
Call Options Plays
Put Options Plays
None AET
  NBIX

New Calls

None today.
 

New Puts

Aetna - AET - close: 75.55 chg: -1.22 stop: 79.01

Company Description:
As one of the nation's leading providers of health care, dental, pharmacy, group life, disability and long-term care benefits, Aetna puts information and helpful resources to work for its approximately 14.435 million medical members, 12.976 million dental members, 9.117 million pharmacy members and 13.662 million group insurance members to help them make better informed decisions about their health care and protect their finances against health-related risks. Aetna provides easy access to cost-effective health care through a nationwide network of more than 684,000 health care professionals, including over 405,000 primary care and specialist doctors and 4,135 hospitals. (source: company press release or website)

Why We Like It:
AET has been a huge winner for investors since it bottomed back in October 2004. Yet now it appears that the stock has peaked in the $86.00 range after it consolidated under that level for about a month back in June-July. The current short-term trend is a bearish one and now that the broader markets look poised for some profit taking we believe AET will test support near $70.00 and its 200-dma. The Point & Figure chart is also bearish and points to a $64.00 target. While we are suggesting entries here more conservative traders may want to wait for AET to hit a new relative low under $74.50 first. Our official target will be $70.50-70.00.

Suggested Options:
We are suggesting the September puts.

BUY PUT SEP 80.00 AET-UP OI= 270 current ask $5.40
BUY PUT SEP 75.00 AET-UO OI=1288 current ask $2.25
BUY PUT SEP 70.00 AET-UN OI= 936 current ask $0.75

Picked on August 07 at $ 75.55
Change since picked: + 0.00
Earnings Date 07/28/05 (confirmed)
Average Daily Volume = 2.0 million

---

Neurocrine Bio. - NBIX - cls: 47.30 chg: -0.98 stop: 50.01

Company Description:
Neurocrine Biosciences, Inc. is a product-based biopharmaceutical company focused on neurological and endocrine diseases and disorders. Our product candidates address some of the largest pharmaceutical markets in the world including insomnia, anxiety, depression, diabetes, multiple sclerosis, irritable bowel syndrome, eating disorders, pain, and autoimmunity. (source: company press release or website)

Why We Like It:
NBIX reported better than expected earnings but like many stocks the reaction was negative as investors sold the news. We think NBIX looks like a tempting bearish candidate because the biotech sector has been the leadership group over the past two months and looks poised for profit taking. Technicals in NBIX are bearish and the stock has broken its trendline of support. There is potential support near the $45.00 level but we are going to target the $43.00-42.00 range near its simple 200-dma. Traders can choose to buy puts here or look for a possible bounce back toward the $49.00-49.50 region and then enter on a failed rally.

Suggested Options:
We are suggesting the September puts.

BUY PUT SEP 50.00 UOT-UJ OI=1203 current ask $3.90
BUY PUT SEP 45.00 UOT-UI OI= 867 current ask $1.35

Picked on August 07 at $ 47.30
Change since picked: + 0.00
Earnings Date 08/03/05 (confirmed)
Average Daily Volume = 543 thousand
 

New Play Archives