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  CCJ  

New Calls

None today.
 

New Puts

Administaff - ASF - close: 40.25 change: -1.71 stop: 42.65

Company Description:
Administaff is a leading personnel management company that serves as a full-service human resources department for small and medium-sized businesses throughout the United States. (source: company press release or website)

Why We Like It:
The upward trend in ASF stalled back in November and peaked again in early December. Since then the stock has been consolidating sideways under resistance in the $47.50 region. Now the stock is finally starting to see some profit taking. There was a failed rally on February 1s and today's decline had ASF closing under technical support at the 100-dma on above average volume. This looks like a new bearish entry point to buy puts. However, ASF still has round-number support at the $40.00 mark. We are going to suggest a trigger to buy puts at $39.90. If triggered we'll target a decline towards the simple 200-dma (currently at 33.73) but since the 200-dma is rising we'll use a target zone of $35.25-34.50. The P&F chart is bearish and points to a $35 target. This is a short-term play. We do not want to hold over the February 16th earnings report.

Suggested Options:
We are suggesting the March puts but we plan to exit on February 15th at the closing bell.

BUY PUT MAR 45 ASF-OI open interest= 0 current ask $5.80
BUY PUT MAR 40 ASF-OH open interest= 11 current ask $2.55
BUY PUT MAR 35 ASF-OG open interest= 10 current ask $0.85

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/16/06 (confirmed)
Average Daily Volume = 367 thousand

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Cameco Corp. - CCJ - close: 68.57 change: -4.21 stop: 73.76

Company Description:
Cameco, with its head office in Saskatoon, Saskatchewan, is the world's largest uranium producer. The company's uranium products are used to generate electricity in nuclear energy plants around the world, providing one of the cleanest sources of energy available today. (source: company press release or website)

Why We Like It:
We have been watching CCJ since the company reported earnings and a stock split on January 31st. The following day, February 1st, the stock produced a huge bearish engulfing candlestick pattern (a.k.a. bearish reversal) on big volume. We waited to see if and where CCJ would bounce and if there would be a significant trend change. Long-term we are fundamentally very bullish on CCJ. The world's dependency on oil and the future price shocks in crude oil will force nations to increase their nuclear energy programs. CCJ is a major supplier of uranium to fuel those electricity plants. Thus CCJ is probably a good candidate to consider for long-term investments. Yet short-term it looks like shares are suffering from some overdue profit taking. We see support near the $60 level and would definitely watch for a bounce and a potential bullish entry point near $60.00. We want to try and capture the decline from here (today's failed rally under the 10-dma) towards support near $60. We're going to use a target range of $61.50-60.00. The P&F chart is bearish and points to a $57 target. We'll put our stop loss above today's high. CCJ is set to split 2-for-1 on February 23rd.

Suggested Options:
We are suggesting the March puts.

BUY PUT MAR 70 CCJ-ON open interest=1482 current ask $5.20
BUY PUT MAR 65 CCJ-OM open interest=3001 current ask $2.80
BUY PUT MAR 60 CCJ-OL open interest= 663 current ask $1.30

Picked on February 07 at $ 68.57
Change since picked: + 0.00
Earnings Date 01/31/06 (confirmed)
Average Daily Volume = 1.1 million
 

New Strangles

None today.
 

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