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New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
None BA None
  CMG  
  FAST  
  HIG  
  ISRG  

New Calls

None today.
 

New Puts

Boeing - BA - close: 77.16 change: -0.69 stop: 80.85

Company Description:
Boeing is the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined, with capabilities in rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems. Our reach extends to customers in 145 countries around the world, and we are the number one U.S. exporter in terms of sales. (source: company press release or website)

Why We Like It:
The 40+ month bull run in shares of BA could be in serious jeopardy. The stock peaked under $90.00 in May and has been consolidating in a bearish trend of lower highs while bouncing along support near $76.00 ever since. The Point & Figure chart is already bearish and points to a $69 target. A decline under $76.00 would produce another P&F chart sell signal. A drop under $76.00 would also produce a bearish breakdown sell signal on the daily chart and would also be a breakdown under technical support at its simple and exponential 200-dma(s). We are suggesting a trigger to buy puts at $75.75. More conservative traders may want to wait for a breakdown under round-number support at $75.00 before initiating positions. Our target will be the $70.50-70.00 range.

Suggested Options:
We are suggesting the September puts.

BUY PUT SEP 80.00 BA-UP open interest=2074 current ask $4.10
BUY PUT SEP 75.00 BA-UO open interest=6441 current ask $1.55
BUY PUT SEP 70.00 BA-UN open interest= 264 current ask $0.45

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 4.2 million

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Chipotle Mex Grill - CMG - close: 50.28 chg: -3.13 stop: 54.01

Company Description:
Chipotle Mexican Grill offers a focused menu of burritos, tacos, burrito bols (a burrito without the tortilla) and salads made from fresh, high-quality raw ingredients, prepared using classic cooking methods and served in a distinctive atmosphere. Through our vision of Food with Integrity, Chipotle is seeking better food not only from a variety of fresh ingredients, but ingredients that are sustainably grown and naturally raised with respect for the animals, the land, and the farmers who produce the food. Chipotle opened its first restaurant in 1993 and operates more than 500 restaurants today. (source: company press release or website)

Why We Like It:
The entire restaurant sector looks pretty bad. A lot of stocks in the group have been hitting new relative lows for a while. Investors might be selling the group on fears that higher-fuel prices will impact spending and now newer fears of a slow down in the economy may produce another round of selling in the sector. We normally don't want to chase a big move like CMG's 5.8% decline today but we suspect there is more weakness to come. The stock recently produced a failed rally/bearish reversal under its 50-dma and the mid-July highs. Now shares look ready to breakdown under the $50.00 mark. Technicals are bearish although the P&F chart is still bullish for now. We are suggesting that readers consider put positions here but there are alternatives. You could wait for a breakdown under $50.00. Or you could wait for a bounce back toward the $52.50 region and look for shares to begin to roll over again. We are using a wide stop loss since CMG has been volatile lately. Our target is the $45.50-45.00 range.

Suggested Options:
We are suggesting the September puts.

BUY PUT SEP 55.00 CMG-UK open interest=302 current ask $5.70
BUY PUT SEP 50.00 CMG-UJ open interest=379 current ask $2.60
BUY PUT SEP 45.00 CMG-UI open interest=768 current ask $0.95

Picked on August 09 at $ 50.28
Change since picked: + 0.00
Earnings Date 10/30/06 (unconfirmed)
Average Daily Volume = 414 thousand

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Fastenal - FAST - close: 35.20 chg: -0.58 stop: 37.75

Company Description:
Fastenal Company sells different types of industrial and construction supplies in ten product categories. These include different types of: threaded fasteners and miscellaneous supplies; tools; metal cutting tool blades; fluid transfer components and accessories for hydraulic and pneumatic power; material handling and storage products; janitorial and paper products; electrical supplies; welding supplies; safety supplies; and raw materials (metals). (source: company press release or website)

Why We Like It:
FAST gapped down back on July 12th as investors reacted to the company's earnings miss. It's taken this long for the stock to rally back and "fill the gap". Coincidentally the "fill the gap" move also produced a failed rally/bearish reversal under technical resistance at its descending 50-dma. Technical indicators are turning negative and its P&F chart points to a $24 target. Aggressive traders may want to open positions now. We're suggesting a trigger to buy puts at $34.90. If triggered our target is the $30.75-30.00 range.

Suggested Options:
We are suggesting the September puts.

BUY PUT SEP 40.00 FQA-UH open interest= 77 current ask $5.30
BUY PUT SEP 35.00 FQA-UG open interest= 47 current ask $1.65
BUY PUT SEP 30.00 FQA-UF open interest= 86 current ask $0.25

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/11/06 (unconfirmed)
Average Daily Volume = 1.2 million

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Hartford Fincl - HIG - close: 79.86 chg: -1.13 stop: 82.01

Company Description:
The Hartford, a Fortune 100 company, is one of the nation's largest financial services and insurance companies, with 2005 revenues of $27.1 billion. The Hartford is a leading provider of investment products, life insurance and group benefits; automobile and homeowners products; and business property and casualty insurance. International operations are located in Japan, Brazil and the United Kingdom. (source: company press release or website)

Why We Like It:
The IUX insurance index just broke down to a new low for the year and shares of HIG look ready to follow. The stock has consolidated toward significant support in the $79.50-80.00 region. We suspect that the stock is poised to produce a new leg lower. The P&F chart for HIG is already bearish and points to a $73 target. HIG did manage bounce from the $79.50 and $79.75 levels back in February 2006 and it bounced again near $79.25 in March. Therefore we're suggesting a trigger to buy puts at $79.20. More conservative traders may want to wait for a drop under $79.00 before initiating positions. Our short-term target is going to be the $75.25-75.00 range. More aggressive traders may want to aim for the $72.50-70.00 range.

Suggested Options:
We are suggesting the September puts.

BUY PUT SEP 85.00 HIG-UQ open interest=1326 current ask $5.70
BUY PUT SEP 80.00 HIG-UP open interest=2515 current ask $2.25
BUY PUT SEP 75.00 HIG-UO open interest=1722 current ask $0.65

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/26/06 (unconfirmed)
Average Daily Volume = 1.5 million

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Intuitive Surgical - ISRG - cls: 95.85 chg: -1.28 stop: 101.55

Company Description:
Intuitive Surgical, Inc. is the global technology leader in robotic-assisted minimally invasive surgery (MIS). The Company's da Vinci Surgical System offers surgeons superior visualization, enhanced dexterity, greater precision and ergonomic comfort for the optimal performance of MIS. (source: company press release or website)

Why We Like It:
ISRG managed to beat estimates by 15 cents at its July earnings report but the stock was still subject to some heavy selling on the news. Since then shares of ISRG have struggled to bounce back and the sideways consolidation looks poised to move lower again. The P&F chart is pretty bearish with a projected $60 price target. Before we continue we have to label this an aggressive, high-risk play because shares of ISRG have been so volatile in the past. Our plan is to catch a breakdown under short-term support at $95. We're suggesting a trigger to buy puts at $94.90. If triggered our target is the $87.75-87.50 region, which is relatively close to the March 2006 lows.

Suggested Options:
We are suggesting the September puts.

BUY PUT SEP 100.0 AXQ-UT open interest= 428 current ask $8.00
BUY PUT SEP 95.00 AXQ-US open interest= 443 current ask $5.30
BUY PUT SEP 90.00 AXQ-UR open interest= 492 current ask $3.30

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume = 1.1 million
 

New Strangles

None today.
 

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