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AIG None
NBL  

New Calls

Amer. Intl Group - AIG - cls: 61.23 chg: +1.47 stop: 57.99

Company Description:
American International Group, Inc. (AIG), world leaders in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. (source: company press release or website)

Why We Like It:
Property and casualty insurance stocks are already rebounding sharply from their recent Katrina-inspired lows. Now shares of AIG are breaking out over the $60.00 level and technical resistance at its simple 50-dma and simple 200-dma. AIG's Point & Figure chart points to a $90.00 target but we see some resistance in the $65 region. Given the volume and strength of Friday's breakout we think AIG can make a run to the $65.00 level as well. Our official target will be the $64.75-65.00 range.

Suggested Options:
We are suggesting the October calls.

BUY CALL OCT 60.00 AIG-JL OI=7950 current ask $2.45
BUY CALL OCT 65.00 AIG-JM OI=3712 current ask $0.40

Picked on September 11 at $ 61.23
Change since picked: + 0.00
Earnings Date 11/08/05 (unconfirmed)
Average Daily Volume = 7.2 million

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Noble Energy - NBL - close: 89.80 chg: +2.00 stop: 84.99

Company Description:
Noble Energy is one of the nation's leading independent energy companies and operates throughout major basins in the United States including the Gulf of Mexico, as well as the recently added Patina Oil & Gas properties located primarily in Colorado's Wattenberg Field, the Mid-continent region of western Oklahoma and the Texas Panhandle, and the San Juan Basin in New Mexico. In addition, Noble Energy operates internationally in Argentina, China, Ecuador, Equatorial Guinea, the Mediterranean Sea and the North Sea. Noble Energy markets natural gas and crude oil through its subsidiary, Noble Energy Marketing, Inc. (source: company press release or website)

Why We Like It:
Shares of NBL have managed to hit new all-time highs despite news that a week ago only half of its operations in the gulf were operating following hurricane Katrina. Friday's intraday surge over the $90.00 mark produced a new triple-top breakout buy signal on its P&F chart, which now points to a $109 target. The rest of NBL's daily technicals are bullish and its MACD indicator recently produced a new buy signal. We are suggesting new bullish plays with the stock above the $88.00 level. More conservative traders may want to wait for a new high over $90.40. Our target is the $98-100 range before its November earnings report.

Suggested Options:
We are suggesting the November calls.

BUY CALL NOV 85.00 NBL-KQ OI= 932 current ask $7.70
BUY CALL NOV 90.00 NBL-KR OI= 535 current ask $4.50
BUY CALL NOV 95.00 NBL-KS OI= 457 current ask $2.60

Picked on September 11 at $ 89.80
Change since picked: + 0.00
Earnings Date 11/02/05 (unconfirmed)
Average Daily Volume = 796 thousand
 

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