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New Plays

New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
ITT None None
LVS    
PTR    
RIMM    

Play Editor's Note: The market has been extremely volatile but today's intraday bounce looks like a short-term bottom. We are adding some new bullish candidates but given the volatility in these stocks they might all be considered aggressive plays. A few names that we did not add but would keep an eye on are AAPL, ALL, BIDU, BNI, OXY, and UNP.


New Calls

ITT Educational Ser. - ITT - cls: 130.47 chg: +6.59 stop: 122.49

Company Description:
ITT Educational Services, Inc. ("ESI") is a leading provider of technology-oriented postsecondary degree programs. As of June 30, 2007, ESI operated 93 ITT Technical Institutes in 34 states, which predominantly provide career-focused degree programs of study in fields involving technology to approximately 49,000 students. (source: company press release or website)

Why We Like It:
We are adding ESI as a relative strength play. The stock pretty much ignored the market's weakness over the last two sessions. Shares actually did better than ignore the weakness. ESI broke out to a new high over resistance at $130 today. The MACD has produced a new buy signal and today's rally has produced a new P&F chart buy signal with a $148 target. We are suggesting call positions now above $130 or on a dip near $127.50, which looks like short-term support. Our target is the $139.75-140.00 range.

Suggested Options:
We are suggesting the December or January calls. It is up to each individual investor to decide which month and which strike price best suits their trading style and risk.

BUY CALL DEC 130 ESI-LF open interest= 53 current ask $7.70
BUY CALL DEC 135 ESI-LG open interest= 65 current ask $5.10
BUY CALL DEC 140 ESI-LH open interest= 84 current ask $3.20

BUY CALL JAN 130 ESI-AF open interest=555 current ask $10.00
BUY CALL JAN 135 ESI-AG open interest=190 current ask $ 7.60
BUY CALL JAN 140 ESI-AH open interest=905 current ask $ 5.60

Picked on November 08 at $130.47
Change since picked: + 0.00
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume = 426 thousand

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Las Vegas Sands - LVS - cls: 111.60 chg: +2.72 stop: 104.99

Company Description:
Las Vegas Sands Corp. is one of the leading international developers of multi-use integrated resorts. The Las Vegas, Nevada-based company owns and operates The Venetian Resort- Hotel-Casino and the Sands Expo and Convention Center in Las Vegas and The Venetian Macao Resort-Hotel and the Sands Macao in the People's Republic of China (PRC) Special Administrative Region of Macao. (source: company press release or website)

Why We Like It:
The big gaming stocks peaked in late October as investors began to take profits on the run up due to strong expectations of operations in Macau (part of China). The sell-off picked up speed in LVS after it announced disappointing earnings on November 2nd. Given the $45.00 drop in the last couple of weeks we think most of the bad news has been priced into the stock. LVS managed a bounce near its 100-dma and the $105 level midday. We're suggesting that readers buy the bounce. Needless to say the stock can be very volatile and options are probably a little expensive. We have two targets. Our first target is the $116.90-117.50 range. Our second target is the $121.00-122.50 zone.

Suggested Options:
We are suggesting the December or January calls. It is up to each individual investor to decide which month and which strike price best suits their trading style and risk.

BUY CALL DEC 110 LVS-LB open interest=2166 current ask $9.90
BUY CALL DEC 115 LVS-LC open interest=1541 current ask $7.50
BUY CALL DEC 120 LVS-LD open interest=1536 current ask $5.60

BUY CALL JAN 110 LVS-AB open interest=1608 current ask $12.40
BUY CALL DEC 115 LVS-AC open interest= 199 current ask $10.00
BUY CALL DEC 120 LVS-AD open interest=2087 current ask $ 8.10

Picked on November 08 at $111.60
Change since picked: + 0.00
Earnings Date 11/02/07 (confirmed)
Average Daily Volume = 4.0 million

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PetroChina - PTR - close: 200.25 chg: -12.55 stop: 189.49

Company Description:
PetroChina Company Limited (PetroChina) was established as a joint stock company with limited liabilities under the Company Law of the People's Republic of China (the PRC) on November 5, 1999 as part of the restructuring of China National Petroleum Corporation (CNPC). In the restructuring, CNPC injected into PetroChina most of the assets and liabilities of CNPC relating to its exploration and production, refining and marketing, chemicals and natural gas businesses. (source: company press release or website)

Why We Like It:
Earlier this month a sell-off in Chinese stocks and a downgrade from BSC sent shares of PTR plunging. The profit taking continued and PTR has now fallen more than $70.00 from its late October highs to its intraday lows today. We do not think it's a coincidence that PTR bounced from the $190 level midday. The $190 level was resistance back in early October. Today's action is just an example of broken resistance acting as support. This looks like a short-term bottom but given the volatility in the stock it's definitely an aggressive, higher-risk entry point. PTR can make huge intraday moves and the options are expensive because of it. We're suggesting readers buy calls now following the afternoon bounce. We have two targets. Our first target is the $219.00-220.00 range. Our second target is the $229.00-230.00 range.

Suggested Options:
We are suggesting the December or January calls. It is up to each individual investor to decide which month and which strike price best suits their trading style and risk.

BUY CALL DEC 200 PTR-LW open interest= 830 current ask $19.70
BUY CALL DEC 210 PTR-LZ open interest= 559 current ask $15.50
BUY CALL DEC 220 PTR-LD open interest= 758 current ask $11.70

BUY CALL JAN 210 PTR-AZ open interest= 381 current ask $18.50
BUY CALL JAN 220 DZA-AD open interest=1070 current ask $15.20
BUY CALL JAN 230 DZA-AF open interest=1011 current ask $11.70

Picked on November 08 at $200.25
Change since picked: + 0.00
Earnings Date 03/08/08 (unconfirmed)
Average Daily Volume = 1.5 million

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Research In Motion - RIMM - cls: 124.48 chg: -8.55 stop: 115.49

Why We Like It:
RIMM was a current bullish candidate in the newsletter but the extreme sell-off in tech stocks hit our stop loss today. We think it's an overreaction and we're suggesting that readers buy the afternoon bounce. The stock has a lot of momentum and traders will likely jump in to buy the dip. This is without a doubt an aggressive, higher-risk play due to the market and stock's volatility. Plus, today's weakness definitely looks like a bearish breakdown and the technical indicators reflect that. We'll use a stop under today's low. Our initial target is the $139.50-140.00 range. More aggressive traders may want to aim higher. We do not want to hold over the late December earnings report.

Suggested Options:
We are suggesting the December or January calls. It is up to each individual investor to decide which month and which strike price best suits their trading style and risk.

BUY CALL DEC 130 RUL-LV open interest=7577 current ask $10.30
BUY CALL DEC 135 RUL-LW open interest=5604 current ask $ 8.55
BUY CALL DEC 140 RUL-LH open interest=5020 current ask $ 6.95

BUY CALL JAN 130 RUL-AV open interest=4966 current ask $13.45
BUY CALL JAN 135 RUL-AW open interest=5462 current ask $11.50
BUY CALL JAN 140 RUL-AH open interest=3388 current ask $ 9.85

Picked on November 08 at $124.48
Change since picked: + 0.00
Earnings Date 12/20/07 (unconfirmed)
Average Daily Volume = 21.5 million
 

New Puts

None today.
 

New Strangles

None today.
 

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