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NOV CELG None

New Calls

Nat.Oilwell - NOV - close: 70.73 change: +2.58 stop: 64.90

Company Description:
National Oilwell Varco is a worldwide leader in the design, manufacture and sale of equipment and components used in oil and gas drilling and production operations, the provision of oilfield services, and supply chain integration services to the upstream oil and gas industry. (source: company press release or website)

Why We Like It:
NOV was one of a handful of stocks I listed in the Play Editor's Note over the weekend to watch as a potential candidate. The stock displayed relative strength today with a bullish breakout over the $70.00 level and its late November highs. We are suggesting new call positions now with NOV over $70.00 but this probably qualifies as an aggressive play. Not only does NOV have potential resistance at its 50-dma near $71.80 but we're suggesting bullish positions in a market that looks poised for more profit taking. We're listing a stop loss at $64.90 but more conservative traders might want to put their stop loss near $67.00 instead. An alternative entry point would be to wait for a rally over the 50-dma but if you wait we would use a higher stop loss. Our target is the $79.00-80.00 range. The Point & Figure chart is bullish with an $84 target.

Suggested Options:
We are suggesting the January calls but February strikes would also work. It is up to the individual trader to decide which month and which strike price best suits your trading style and risk.

BUY CALL JAN 70.00 NOV-AN open interest=749 current ask $5.80
BUY CALL JAN 75.00 NOV-AO open interest=795 current ask $3.40
BUY CALL JAN 80.00 NOV-AP open interest=455 current ask $1.90

Picked on December 03 at $ 70.73
Change since picked: + 0.00
Earnings Date 02/06/08 (unconfirmed)
Average Daily Volume = 5.5 million
 

New Puts

Celgene - CELG - close: 60.28 change: -1.27 stop: 64.05

Company Description:
Celgene Corporation, headquartered in Summit, New Jersey, is an integrated global biopharmaceutical company engaged primarily in the discovery, development and commercialization of novel therapies for the treatment of cancer and inflammatory diseases through gene and protein regulation. (source: company press release or website)

Why We Like It:
CELG has been under performing its peers and now the stock is breaking down under its 200-dma and is poised to breakdown under support near $60.00. Shares hit an intraday low of $59.65. Today's drop produced a new sell signal on the Point & Figure chart with a $50.00 target. We are suggesting a trigger to buy puts at $59.49. We have a wide, aggressive stop at $64.05 and more conservative traders will want to consider a tighter stop loss. We have two targets. Our first target is the $55.50-55.00 zone. Our second target is the $51.00-50.00 region.

Suggested Options:
We are suggesting the January puts. Our suggested trigger is at $59.49.

BUY PUT JAN 60.00 LQH-ML open interest=12343 current ask $3.30
BUY PUT JAN 55.00 LQH-MK open interest=15628 current ask $1.55

Picked on December xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 4.2 million
 

New Strangles

None today.
 

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