Option Investor
New Plays

New Option Plays

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

New Calls

Intuitive Surg. - ISRG - close: 74.28 chg: +4.42 stop: 71.99

Company Description:
Intuitive Surgical, Inc., headquartered in Sunnyvale, California, is the global technology leader in the rapidly emerging field of robotic-assisted, minimally invasive surgery (MIS). Intuitive Surgical develops, manufactures and markets robotic technologies designed to improve clinical outcomes and help patients return more quickly to active and productive lives. The company's mission is to extend the benefits of minimally invasive surgery to the broadest possible base of patients. (source: company press release or website)

Why We Like It:
You have probably heard the saying before. It's a market of stocks and not a stock market. This saying helps illustrate how we can still add bullish candidates to the list even if our market bias is more bearish. One such candidate displaying ample amounts of relative strength today is ISRG. Shares rallied sharply this morning and broke through some minor levels of resistance on very strong volume. Technicals are naturally turning higher and its MACD indicator is nearing a new buy signal. Normally we don't like to chase such a strong percentage move but ISRG has a history of volatility. Speaking of volatility the big gap higher on the chart is due to ISRG's surprisingly positive earnings results just days ahead of being added to the S&P midcap index. However, just to protect ourselves we're going to suggest a trigger at $75.11, above round-number resistance at the $75.00 mark and above its early September high at $75.06. If we are triggered our target will be the $79.50-80.00 range. Readers should note that ISRG has relatively high short interest. The latest readings put short interest at 8.3% of its 34.9 million shares outstanding. We will plan to exit before ISRG's late October earnings report.

Suggested Options:
We are suggesting the November calls.

BUY CALL NOV 70.00 AXQ-KN OI=127 current ask $9.00
BUY CALL NOV 75.00 AXQ-KO OI=174 current ask $6.30
BUY CALL NOV 80.00 AXQ-KP OI=270 current ask $4.20

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/24/05 (unconfirmed)
Average Daily Volume = 962 thousand
 

New Puts

None today.
 

New Play Archives