Option Investor
New Plays

New Option Plays

HAVING TROUBLE PRINTING?
Printer friendly version
Call Options Plays
Put Options Plays
Strangle Options Plays
AAPL None None
GOOG    
UTX    

New Calls

Apple Computer - AAPL - close: 60.76 chg: +2.19 stop: 58.69

Company Description:
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, and iLife and professional applications. Apple is also spearheading the digital music revolution with its iPod portable music players and iTunes online music store. (source: company press release or website)

Why We Like It:
The GHA hardware index produced a bullish "hammer" candlestick pattern with a big rebound from its lows in spite of some relative weakness in one of its major components IBM. Shares of AAPL helped contribute to the bullish reversal in the hardware group with a bullish engulfing candlestick pattern and a push back above the $60.00 level. We are going to classify this as an aggressive play since AAPL needs to confirm today's bullish reversal and the Point & Figure chart remains very bearish. We're suggesting call positions with AAPL above $60.00. More conservative traders may want to seriously consider using a trigger above the 10-dma (61.17) or the exponential 200-dma (61.94) before initiating positions. Our short-term target is the $64.90-65.00 range, which is under the simple 50-dma (65.85). We do not want to hold over the July earnings report.

Suggested Options:
We are suggesting the July calls.

BUY CALL JUL 60.00 QAA-GL open interest=20979 current ask $4.20
BUY CALL JUL 62.50 QAA-GZ open interest=10349 current ask $3.00
BUY CALL JUL 65.00 QAA-GM open interest=25713 current ask $2.05

Picked on June 08 at $ 60.76
Change since picked: + 0.00
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 32.1 million

---

Google - GOOG - close: 393.30 chg: +6.79 stop: 384.50

Company Description:
Google's innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top web property in all major global markets. Google's targeted advertising program provides businesses of all sizes with measurable results, while enhancing the overall web experience for users. Google is headquartered in Silicon Valley with offices throughout the Americas, Europe and Asia. (source: company press release or website)

Why We Like It:
We have had our eye on GOOG for a potential bullish play as it consolidated around its rising 200-dma over the last few weeks. Today's intraday rebound from its lows near $378 and its 200-dma look like a potential entry point. The technical picture is bullish and its P&F chart is positive with a projected $444 price target. However, we want to see some confirmation. Therefore we're suggesting a trigger to buy calls at $401.00. If triggered at $401.00 we'll target a rally into the $440.00-445.00 range, which is under the April resistance at $450. More aggressive traders may want to jump in now or wait for a move over $395. The stock tends to be very volatile and the options are expensive and we're labeling this a high-risk, speculative play. We do not want to hold over the July earnings report.

Suggested Options:
This is a high-risk play so choose carefully which option suits your trading style. Our suggested trigger to open positions is $401.00. We are suggesting the July calls.

BUY CALL JUL 390.00 GOP-FR open interest=11772 current ask $9.70
BUY CALL JUL 400.00 GOP-FT open interest=24673 current ask $4.80
BUY CALL JUL 410.00 GOP-FB open interest= 9669 current ask $2.15
BUY CALL JUL 420.00 GOP-FD open interest= 9889 current ask $0.85

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 9.8 million

---

United Tech. - UTX - close: 60.13 chg: +0.29 stop: 58.75

Company Description:
United Technologies Corp. based in Hartford, Connecticut, is a diversified company that provides a broad range of high technology products and support services to the building systems and aerospace industries. (source: company press release or website)

Why We Like It:
It looks like Dow-component UTX has produced a short-term bottom. Today's session produced a bullish "hammer" candlestick pattern, which is typically used as a bullish reversal signal. It's interesting to note that shares of UTX dipped just low enough to fill the gap from April and test its rising trendline of support (see chart). The bounce back above $60.00 and its 100-dma are also positives. We are suggesting call positions with UTX above $60.00. Our target will be the $64.00-65.00 range. We do expect some resistance near $62.00 and its 50-dma. We do not want to hold over the July earnings report.

Suggested Options:
We are suggesting the July calls.

BUY CALL JUL 60.00 UTX-GL open interest=1357 current ask $2.30
BUY CALL JUL 65.00 UTX-GM open interest=3672 current ask $0.50

Picked on June 08 at $ 60.13
Change since picked: + 0.00
Earnings Date 07/19/06 (unconfirmed)
Average Daily Volume = 3.7 million
 

New Puts

None today.
 

New Strangles

None today.
 

New Play Archives