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New Plays

New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
FSTR FWLT None
  ISRG  
  MICC  
  VMC  

New Calls

L.B.Foster Co. - FSTR - cls: 37.33 chg: 0.90 stop: 33.90

Company Description:
L.B. Foster Company is a leading manufacturer, fabricator, and distributor of products for the rail, construction and utility and energy markets with approximately 30 locations throughout the United States. (source: company press release or website)

Why We Like It:
This is an aggressive, higher-risk play. With the market falling we normally would avoid any sort of bullish play like this. However, FSTR is showing great relative strength. The stock has been ignoring the recent market weakness. Furthermore shares are hitting new highs on above average volume. We are suggesting new bullish positions now although traders could look for a dip back toward $35.00 and its 10-dma or wait for a new high over $38.00 before initiating positions. Due to the market's volatility and FSTR's own volatility we are using a wide (aggressive) stop loss. We have two targets. Our first target is the $39.90-40.00 range. Our second target is the $42.00-42.50 zone. FYI: More conservative traders may want to put their stop loss closer to $35.00.

Suggested Options:
We are suggesting the September calls.

BUY CALL SEP 35.00 FQD-IG open interest=148 current ask $4.00
BUY CALL SEP 40.00 FQD-IH open interest= 20 current ask $1.40

Picked on August 14 at $ 37.33
Change since picked: 0.00
Earnings Date 10/25/07 (unconfirmed)
Average Daily Volume = 148 thousand
 

New Puts

Foster Wheeler - FWLT - cls: 101.46 chg: -1.70 stop: 105.05

Company Description:
Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the upstream oil and gas, LNG and gas-to-liquids, refining, petrochemicals, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. (source: company press release or website)

Why We Like It:
Yes, this is another company with the name "Foster" in it. We're not trying to confuse you. Shares of FWLT have broken their bullish trend and look poised for more profit taking. The stock did produce a bounce and bullish reversal near its 100-dma a few days ago but that bounce is struggling under $105 and its 10-dma. We're suggesting a trigger to buy puts at $99.50 so FWLT will have to breakdown again under round-number support at $100.00 first. If triggered at $99.50 our target is the $92.50-90.00 range. Watch out for potential support at the 100-dma. FYI: The P&F chart is bearish with a $68 target.

Suggested Options:
We are suggesting the September puts. Our trigger is at $99.50.

BUY PUT SEP 100 UFB-UT open interest=1847 current ask $6.10
BUY PUT SEP 95 UFB-US open interest= 942 current ask $4.10
BUY PUT SEP 90 UFB-UR open interest= 205 current ask $2.40

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: 0.00
Earnings Date 11/08/07 (unconfirmed)
Average Daily Volume = 2.4 million

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Intuitive Surgical - ISRG - cls: 196.80 chg: -4.40 stop: 205.51

Company Description:
Surgical robotics was little more than a medical curiosity until 1999, the year Intuitive Surgical introduced the da Vinci Surgical System. Today, Intuitive Surgical is the global leader in the rapidly emerging field of robotic-assisted minimally invasive surgery. Since its inception, the company has consistently provided surgeons and hospitals with the tools needed to improve clinical outcomes and to help patients return to active and productive lives. (source: company press release or website)

Why We Like It:
This is an aggressive, high-risk play. ISRG is normally a volatile stock and now with the markets acting volatile the stock can see some pretty big swings. Odds of an intraday move stopping us out are pretty high. Then again the same volatility can move in our favor! Shares have been climbing for months so there's a lot of bullish momentum behind it. However, that momentum appears to have run out of steam. The stock has built something of a bearish top and failed rally over the last few weeks. Technicals are starting to turn bearish. ISRG has short-term support near $195.00. We're suggesting a trigger to buy puts at $194.50. If triggered our target is the $181.00-180.00 zone. The P&F chart has recently turned bearish and points to a $180 target (for now).

Suggested Options:
We are suggesting the September puts. Our trigger to open positions is at $194.50.

BUY PUT SEP 200 AXV-UI open interest= 699 current ask $12.00
BUY PUT SEP 195 AXV-US open interest= 757 current ask $ 9.10
BUY PUT SEP 190 AXV-UG open interest= 500 current ask $ 7.00
BUY PUT SEP 185 AXV-UQ open interest= 305 current ask $ 5.20

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: 0.00
Earnings Date 10/25/07 (unconfirmed)
Average Daily Volume = 1.2 million

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Millicom - MICC - cls: 75.46 chg: -3.34 stop: 80.05

Company Description:
Millicom International Cellular S.A. is a global telecommunications investor with cellular operations in Asia, Latin America and Africa. It currently has cellular operations and licenses in 16 countries. The Group's cellular operations have a combined population under license of approximately 281 million people. (source: company press release or website)

Why We Like It:
MICC has bounced three times near support at the $75.00 level and its simple and exponential 200-dma. Yet each time the bounce has failed and we've seen a new lower low occur. Now the stock is on the verge of breaking down under support. We're suggesting a trigger to buy puts at $74.25, which is under Tuesday's low. Unfortunately, the stock has been so volatile lately that we have to use a very wide stop loss at $80.05. This isn't the best risk-reward ratio. If triggered we're going to have two targets. Our first target is the $70.25-70.00 range. Our second is the 67.50-67.00 zone. FYI: The P&F chart has produced a new bearish triangle breakdown sell signal with a $54 target.

Suggested Options:
We are suggesting the September puts. Our trigger to open positions is at $74.25.

BUY PUT SEP 75.00 CQD-UO open interest= 194 current ask $4.60
BUY PUT SEP 70.00 CQD-UN open interest= 162 current ask $2.65

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: 0.00
Earnings Date 10/25/07 (unconfirmed)
Average Daily Volume = 733 thousand

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Vulcan Materials - VMC - cls: 91.03 chg: -3.94 stop: 92.55

Company Description:
Vulcan Materials Company, a member of the S&P 500 index, is the nation's largest producer of construction aggregates and a major producer of asphalt and concrete. (source: company press release or website)

Why We Like It:
VMC spent almost six months building a top in the $110-125 range. The breakdown occurred in mid July. The stock produced an oversold bounce from the $90 level in early August. That bounce failed near $100 and now shares are poised to launch into its next leg lower. We are suggesting a trigger at $89.75, just under Tuesday's low. If triggered we have two targets. Our first target is the $85.25-85.00 range. Our second target is the $81.00-80.00 range. The P&F chart is bearish with an $81 target.

Suggested Options:
We're suggesting the September puts. Our trigger to open plays is at $89.75.

BUY PUT SEP 90.00 VMC-UR open interest= 384 current ask $4.90
BUY PUT SEP 85.00 VMC-UQ open interest= 230 current ask $2.95

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: 0.00
Earnings Date 10/30/07 (unconfirmed)
Average Daily Volume = 1.3 million
 

New Strangles

None today.
 

New Play Archives