New Plays, Wednesday, 10/25/2006
New Option Plays
by OI Staff
HAVING TROUBLE PRINTING?
Call Options Plays
Put Options Plays
Strangle Options Plays
NTL Inc. - NTLI - close: 26.95 chg: +1.05 stop: 25.99
ntl Incorporated is the UK's largest cable operator and a leading provider of
broadband, digital television, telephony, content and communications services to
homes, businesses and public sector organizations. From the consolidation of the
cable industry to
the roll-out of broadband, ntl and Telewest have led the communications industry
for over a decade, providing
services to 5 million residential customers and
reaching 85% of UK businesses. (source: company press release or website)
Why We Like It:
We hesitate to add another call candidate to the newsletter when the major
averages are looking so overbought and due for a rest. However, the pattern in
NTLI looks pretty bullish and today's very strong volume behind the rally
suggests that the stock might be poised for a big breakout. We are suggesting a
trigger to buy calls
at $27.41, which is above the September 11th, 2006 high.
This should be a breakout over resistance and clear the way for a run towards
the $30.00 region. If triggered at $27.41 our target is the $29.90-30.00 range.
We do not want to hold over the early November (8th?) earnings report.
We are suggesting the November or December calls. Our trigger to open positions
is at $27.41.
BUY CALL NOV 25.00 NUD-KE open interest=1948 current ask $2.40
CALL NOV 27.50 NUD-KY open interest=5264 current ask $0.90
BUY CALL NOV 30.00 NUD-KF open interest=1212 current ask $0.25
BUY CALL DEC 25.00 NUD-LE open interest=11490 current ask $2.70
BUY CALL DEC 27.50 NUD-LY open interest=10893 current ask $1.30
BUY CALL DEC 30.00 NUD-LF open interest= 6218 current ask $0.55
on October xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/08/06 (unconfirmed)
Average Daily Volume = 2.4 million