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Call Options Plays
Put Options Plays
Strangle Options Plays
APC None None
CLF    
NBR    
PTRY    
RTP    
TS    

New Calls

Anadarko Petrol. - APC - close: 100.55 chg: +1.20 stop: 96.95

Company Description:
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2005, the company had 2.45 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. Anadarko's operational focus in North America extends from the deepwater Gulf of Mexico, up through the western U.S. and Canadian regions and onto the North Slope of Alaska. Anadarko's international activities are focused on its major positions in North Africa, the Middle East, Indonesia and exploration or production operations in several other countries. (source: company press release or website)

Why We Like It:
We are bullish on the oil sector. The price of crude will probably have a floor under it given the ongoing violence in Nigeria and geopolitical tension in Iran and Iraq. Meanwhile APC looks like another bullish candidate. The stock is bouncing from an early March test of support near its 200-dma. On Friday the stock tried to breakout over technical resistance at its simple 50-dma and resistance at its trendline of lower highs. If the oil indices continue to move higher then we expect APC will follow and we want to catch the breakout. We are going to suggest a trigger to buy calls at $102.10. If triggered then we will aim for a rally into the $109.50-110.00 range.

Suggested Options:
We are suggesting the May calls but note that we do not want to hold over the late April earnings report.

BUY CALL MAY 100 APC-ET open interest=3971 current ask $5.30
BUY CALL MAY 105 APC-EA open interest=1451 current ask $3.10
BUY CALL MAY 110 APC-EB open interest=2267 current ask $1.65

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/28/06 (unconfirmed)
Average Daily Volume = 2.5 million

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Cleveland Cliffs - CLF - close: 94.14 chg: +3.85 stop: 89.45

Company Description:
Cleveland-Cliffs Inc, headquartered in Cleveland, Ohio, is the largest producer of iron ore pellets in North America and sells the majority of its pellets to integrated steel companies in the United States and Canada. Cleveland-Cliffs Inc operates a total of six iron ore mines located in Michigan, Minnesota and Eastern Canada. The Company is majority owner of Portman Limited, the third-largest iron ore mining company in Australia, serving the Asian iron ore markets with direct-shipping fines and lump ore. (source: company press release or website)

Why We Like It:
Metal and mining-related stocks were big winners on Friday. One such winner was CLF. The stock rebounded from the $90.00 level to breakout over resistance at its 100-dma, 50-dma and resistance at the $92.75 region. Volume came in above average on the rally, which is bullish. We also note that the P&F chart shows a breakout through resistance and points to a $114 target. We are going to suggest bullish positions here with CLF above $93.00. We are going to be aggressive with our target and aim for the $107-110 range. However, we do expect some resistance near $100 and more conservative traders may just want to play it safe and exit in the $99.50-100.00 range, especially since our time frame is only thirty days. Going forward we'll discuss the $100 level as our conservative target.

Suggested Options:
We are suggesting the May calls but we do not want to hold over the late April earnings report.

BUY CALL MAY 90 CLF-ER open interest= 36 current ask $8.60
BUY CALL MAY 95 CLF-ES open interest= 48 current ask $5.90
BUY CALL MAY100 CLF-ET open interest= 14 current ask $3.80

Picked on March 26 at $ 94.14
Change since picked: + 0.00
Earnings Date 04/26/06 (unconfirmed)
Average Daily Volume = 545 thousand

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Nabors Inds. - NBR - close: 67.62 chg: +1.06 stop: 64.99

Company Description:
The Nabors companies own and operate almost 600 land drilling and approximately 875 land workover and well-servicing rigs worldwide. Offshore, Nabors operates 43 platform rigs, 19 jack-up units and three barge rigs in the United States and multiple international markets. Nabors markets 28 marine transportation and supply vessels, primarily in the U.S. Gulf of Mexico. In addition, Nabors manufactures top drives and drilling instrumentation systems and provides comprehensive oilfield hauling, engineering, civil construction, logistics and facilities maintenance, and project management services. Nabors participates in most of the significant oil, gas and geothermal markets in the world. (source: company press release or website)

Why We Like It:
The OSX oil services index looks poised for a breakout and if it does rally higher then NBR will likely follow suit. Shares of NBR have already spent the last four weeks building on a new base or bottom after a painful decline in February. Friday's rally in NBR produced a new P&F chart buy signal that points to a $77 target. We want to see some confirmation so we are suggesting a trigger to buy calls at $68.75. If triggered we will target a move into the $74.00-75.00 range. Please note that NBR is set to split 2-for-1 on April 18th. Our post-split target will be $37.00. We do not want to hold over the late April earnings report.

Suggested Options:
If triggered then we are suggesting the May calls.

BUY CALL MAY 65.00 NBR-EM open interest= 750 current ask $5.50
BUY CALL MAY 67.50 NBR-EU open interest= 309 current ask $4.10
BUY CALL MAY 70.00 NBR-EN open interest=2648 current ask $2.85
BUY CALL MAY 72.50 NBR-EV open interest= 348 current ask $1.95

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/27/06 (unconfirmed)
Average Daily Volume = 3.7 million

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Pantry Inc. - PTRY - close: 61.85 chg: +0.83 stop: 58.85

Company Description:
Headquartered in Sanford, North Carolina, The Pantry, Inc. is the leading independently operated convenience store chain in the southeastern United States and one of the largest independently operated convenience store chains in the country, with net sales for fiscal 2005 of approximately $4.4 billion. As of December 29, 2005, the Company operated 1,401 stores in eleven states under select banners including Kangaroo Express(SM), our primary operating banner, Golden Gallon, and Cowboys(SM). The Pantry's stores offer a broad selection of merchandise, as well as gasoline and other ancillary services designed to appeal to the convenience needs of its customers. (source: company press release or website)

Why We Like It:
PTRY is somewhat of a momentum play. We believe the stock is offering traders a new bullish entry point with the bounce from the bottom of its rising channel. This will allow for a relatively tight stop loss. One of our concerns is that volume has been very light the last few days and that's bearish. We are going to suggest call positions here above $60.00 but more conservative traders may want to wait for a new high above $62.70. Our target is the $67.00-68.00 range. We do not want to hold over the late April earnings report.

Suggested Options:
We are suggesting May calls.

BUY CALL MAY 60 PQR-EL open interest= 26 current ask $4.70
BUY CALL MAY 65 PQR-EM open interest= 65 current ask $2.15

Picked on March 26 at $ 61.85
Change since picked: + 0.00
Earnings Date 04/27/06 (unconfirmed)
Average Daily Volume = 364 thousand

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Rio Tinto - RTP - close: 198.60 chg: +4.55 stop: 189.90

Company Description:
Rio Tinto is a mining company supplying aluminum, copper, gold, minerals, and iron ore. (source: company press release or website)

Why We Like It:
RTP is another bullish candidate from the rebounding metal, gold and mining sector. Friday saw the stock breakout over resistance at $195.00, its simple 50-dma and its two-month trendline of lower highs. Short-term technical oscillators are turning bullish again and its P&F chart has reversed into a new buy signal that currently points to a $220 target. Our concern is that volume on the rally was below average and that RTP is still trading under the $200 mark, which might act as round-number resistance. We are going to suggest call positions here above $195 but more conservative traders may want to wait for a breakout over $200 before initiating plays. Our target is the $210-212 range.

Suggested Options:
We are suggesting the May calls. Individual traders should pick which strike works best for their own personal strategy. At this time the CBOE does not list any strikes above $200 for May.

BUY CALL MAY 190 RTP-ER open interest= 6 current ask $16.70
BUY CALL MAY 195 RTP-ES open interest= 4 current ask $11.60
BUY CALL MAY 200 RTP-ET open interest= 5 current ask $ 8.90

Picked on March 26 at $198.60
Change since picked: + 0.00
Earnings Date 02/06/06 (confirmed)
Average Daily Volume = 326 thousand

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Tenaris - TS - close: 184.55 chg: +5.45 stop: 177.79

Company Description:
Tenaris is a leading global manufacturer and supplier of seamless steel pipe products and provider of pipe handling, stocking and distribution services to the oil and gas, energy and mechanical industries. It is also a leading regional supplier of welded steel pipes for gas pipelines in South America. With manufacturing facilities in Argentina, Brazil, Canada, Italy, Japan, Mexico, Romania and Venezuela and a network of customer service centers in over 20 countries, Tenaris has an annual production capacity of 3.3 million tons of seamless, and 930 thousand tons of welded pipes, annual consolidated net sales in excess of US$ 6.5 billion and 17,500 employees worldwide. (source: company press release or website)

Why We Like It:
Business is probably pretty good for TS right now. The high price of oil has oil-related companies flush with cash and they're probably spending some of it with TS. The stock has a bullish trend of higher lows as it consolidates under resistance near $186. We think shares are poised to breakout higher. We're going to suggest a trigger to buy calls at $186.75. If triggered we will target a rally into the $198-200.00 range, which is consistent with the bullish P&F chart target.

Suggested Options:
We are suggesting the May calls.

BUY CALL MAY 180 TSW-EP open interest=120 current ask $15.80
BUY CALL MAY 185 TSW-EQ open interest= 80 current ask $13.20
BUY CALL MAY 190 TSW-ER open interest=108 current ask $10.90
BUY CALL MAY 195 TSW-ES open interest= 0 current ask $ 8.90
BUY CALL MAY 200 TSW-ET open interest= 0 current ask $ 7.30

Picked on March xx at $xxx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/01/06 (unconfirmed)
Average Daily Volume = 553 thousand
 

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