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Call Options Plays
Put Options Plays
Strangle Options Plays
CCJ JCI None
FCX    
UIC    
VFC    

New Calls

Cameco - CCJ - close: 40.33 change: +0.11 stop: 37.95

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:
There are multiple reasons why we like CCJ as a bullish candidate. The company is a huge player in the uranium mining market. As oil continues to rise the world's interest in alternative energy sources like nuclear-powered electricity plants rises too. Long-term demand for oil will out strip supply and that makes CCJ a tempting long-term play. Short-term the upcoming U.N. showdown with Iran and the August 31st deadline could send oil higher. CCJ also produces gold and the same geo-political concerns will likely keep gold in demand. The chart also has various bullish signals. Yesterday's rally past the $40 level was a bullish breakout over its trendline of resistance. The recent bounce was a bounce from longer-term support on the weekly chart. The P&F chart is bullish and points to a $55 target. We are suggesting call options with CCJ above the $40 mark. Our time frame is four to six weeks and our target is the $44.50-45.00 range.

Suggested Options:
We are suggesting the October calls.

BUY CALL OCT 35.00 CCJ-JG open interest= 26 current ask $6.30
BUY CALL OCT 40.00 CCJ-JH open interest=475 current ask $2.85
BUY CALL OCT 45.00 CCJ-JI open interest=454 current ask $0.95

Picked on August 22 at $ 40.33
Change since picked: + 0.00
Earnings Date 07/28/06 (confirmed)
Average Daily Volume = 1.9 million

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Freeport McMoran - FCX - close: 56.90 chg: -0.25 stop: 52.95

Company Description:
FCX explores for, develops, mines and processes ore containing copper, gold and silver in Indonesia, and smelts and refines copper concentrates in Spain and Indonesia. (source: company press release or website)

Why We Like It:
Shares of FCX, a miner of copper, gold and silver, look poised to breakout higher. The stock has already seen a strong week with a bullish breakout on Monday past its short-term trendline of lower highs and technical resistance at its simple 200-dma. Aggressive traders may just want to consider call positions here. We want to see a little more confirmation and a breakout past its simple 100-dma, which has been resistance in the past. We're suggesting a trigger to buy calls at $57.51. Currently the Point & Figure chart points to a $76 target. If triggered our target will be the $62.50-63.00 range since the bottom of the May gap down near $63.00 could be resistance. Traders should also note that we do expect some short-term resistance near $60.00 and a retest of the 100-dma, once broken as resistance, should act as support.

Suggested Options:
We are suggesting the October calls.

BUY CALL OCT 55.00 FCX-JK open interest= 41 current ask $4.50
BUY CALL OCT 60.00 FCX-JL open interest=1173 current ask $2.20

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/17/06 (unconfirmed)
Average Daily Volume = 5.1 million

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United Ind. - UIC - close: 51.27 change: +1.71 stop: 47.49

Company Description:
United Industrial Corporation designs, produces, and supports defense systems. Its products and services include unmanned aerial vehicle systems, training and simulation systems, automated aircraft test and maintenance equipment, armament systems, logistical and engineering services, and other leading-edge technology solutions for defense needs. The company also manufactures combustion equipment for business and refuse fuels. (source: company press release or website)

Why We Like It:
Today's 3.4% rally in shares of UIC is a significant bullish breakout over resistance at the $50.00 level. The move follows yesterday's bullish breakout over technical resistance at its 200-dma. The stock has been pretty strong the last several days and we suspect that UIC could be ready for a dip, especially with the simple 100-dma directly overhead near $52. We are suggesting that traders wait for a dip into the $50.25-50.00 region and we're going to suggest a trigger at $50.25 to open plays. However, more nimble traders might want to wait and watch since UIC may dip as low as $49.00-49.25 near its 200-dma. If triggered our target is the $54.75-55.00 range. More aggressive traders might want to aim higher. The bullish P&F chart points to a $64 target.

Suggested Options:
We are suggesting the October calls.

BUY CALL OCT 45.00 UIC-JI open interest= 5 current ask $8.30
BUY CALL OCT 50.00 UIC-JJ open interest= 1 current ask $4.50
BUY CALL OCT 55.00 UIC-JK open interest= 3 current ask $2.35

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/01/06 (confirmed)
Average Daily Volume = 198 thousand

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VF Corp. - VFC - close: 70.03 change: +0.86 stop: 68.45

Company Description:
VF Corporation is a leader in branded apparel including jeanswear, outdoor products, intimate apparel, image apparel and sportswear. Its principal brands include Lee, Wrangler, Riders, Rustler, Vanity Fair, Vassarette, Bestform, Lily of France, Nautica, John Varvatos, JanSport, Eastpak, The North Face, Vans, Reef, Napapijri, Kipling, Lee Sport and Red Kap. (source: company press release or website)

Why We Like It:
We're adding VFC as new relative strength play. The stock has been able to maintain its bullish trend higher over the past few months and now its recent trading range has narrowed. VFC's consolidation over the past few days looks ready to breakout to new highs. The P&F chart is already bullish with a $99 target and a move over $71.00 would produce a new triple-top breakout buy signal. We want to catch a breakout over resistance at $70.00. We are suggesting a trigger to buy calls at $70.25. If triggered we're targeting a short-term rally into the $74.00-75.00 range. More aggressive traders may want to aim higher.

Suggested Options:
We're suggesting the October calls.

BUY CALL OCT 65.00 VFC-JM open interest= 0 current ask $6.40
BUY CALL OCT 70.00 VFC-JN open interest= 0 current ask $3.10
BUY CALL OCT 75.00 VFC-JO open interest= 0 current ask $1.20

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 567 thousand
 

New Puts

Johnson Controls - JCI - close: 72.96 chg: -0.39 stop: 76.51

Company Description:
Johnson Controls is a global leader in interior experience, building efficiency and power solutions. The company provides innovative automotive interiors that help make driving more comfortable, safe and enjoyable. For buildings, it offers products and services that optimize energy use and improve comfort and security. Johnson Controls also provides batteries for automobiles and hybrid electric vehicles, along with systems engineering and service expertise. Johnson Controls has 136,000 employees in more than 1,000 locations serving customers in 125 countries. (source: company press release or website)

Why We Like It:
JCI looks poised to hit new relative lows. The stock had already produced a bearish head-and-shoulders top over the summer but eventually saw shares break below the neckline as investors reacted to the company's earnings report (around July 20th). The oversold bounce never made it very far and the recent rally last week failed under its 50-dma. Technicals have turned bearish and the P&F chart has produced a triple-bottom breakdown sell signal. Currently the P&F target is at $67 but that number could fall further. We are suggesting puts with JCI under $74.00. Our target is the $68.50-67.50 range.

Suggested Options:
We are suggesting the October puts.

BUY PUT OCT 75.00 JCI-VO open interest=480 current ask $4.30
BUY PUT OCT 70.00 JCI-VN open interest=305 current ask $2.00

Picked on August 22 at $ 72.96
Change since picked: + 0.00
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume = 1.3 million
 

New Strangles

None today.
 

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