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New Plays

New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
AKAM None None
CEO    

New Calls

Play Editor's note: We are adding a few bullish candidates to the newsletter but traders should be aware that volume will continue to slip away as investors focus on the Thanksgiving holiday. Friday's session will close early at 1:00 p.m. Eastern time. Light volume can exacerbate stock volatility, which naturally can work for or against you.

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Akamai Technologies - AKAM - cls: 50.65 chg: +0.28 stop: 47.95

Company Description:
Akamai is the leading global service provider for accelerating content and business processes online. Thousands of organizations have formed trusted relationships with Akamai, improving their revenue and reducing costs by maximizing the performance of their online businesses. (source: company press release or website)

Why We Like It:
Technology is still leading the market higher and AKAM looks poised to breakout to new highs. The stock has been consolidating sideways for the past six weeks but that consolidation could be coming to an end. Shares have a bullish trend of higher lows and the majority of its technical indicators are positive. The P&F chart is bullish with a $56 target. We would label this as an aggressive, higher risk entry point since AKAM does have short-term resistance at $52.00 and again near $53.00. More conservative traders may want to decide and wait for further strength before considering new positions. Our short-term target is the $57.00-60.00 range.

Suggested Options:
We are suggesting the January calls.

BUY CALL JAN 50.00 UMU-AJ open interest=3196 current ask $4.20
BUY CALL JAN 55.00 UMU-AK open interest=8829 current ask $2.10

Picked on November 21 at $ 50.65
Change since picked: + 0.00
Earnings Date 01/25/07 (unconfirmed)
Average Daily Volume = 5.3 million

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CNOOC - CEO - close: 85.94 change: +0.80 stop: 84.45

Company Description:
We are a Hong Kong-incorporated public company that engages primarily in the exploration, development and production of crude oil and natural gas offshore China. We are the dominant producer of crude oil and natural gas .The Company is also one of the largest offshore crude producer in Indonesia. (source: company press release or website)

Why We Like It:
We are going to dip our feet in the oil sector again. Last week's sell-off in crude oil failed to crush the bullish trend in the oil sectors. There are a number of stocks in the energy sectors that have rebounded and look like tempting bullish candidates. We like CEO as a potential call option play given that shares are bouncing now that they have filled the gap from early November. We'll try and limit our risk with a relatively tight stop under this week's lows. We're suggesting call positions with the stock above $85. Our target is the $89.50-90.00 range.

Suggested Options:
We are suggesting the January calls. You may want to consider March calls, which have more open interest.

BUY CALL JAN 85.00 CEO-AQ open interest= 0 current ask $4.20
BUY CALL JAN 90.00 CEO-AR open interest= 0 current ask $1.80

Picked on November 21 at $ 85.94
Change since picked: + 0.00
Earnings Date 03/23/07 (unconfirmed)
Average Daily Volume = 261 thousand
 

New Puts

None today.
 

New Strangles

None today.
 

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