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New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
CAM None None
EGN    
HOLX    
NBL    

Play Editor's Note: One stock we wanted to add tonight but just didn't have time was AVT. AVT looks like a bearish candidate and we would consider puts under the November low. The P&F chart points to a $23 target but is suggesting potential support near $31.


New Calls

Cameron - CAM - close: 91.85 chg: -1.57 stop: 89.90

Company Description:
Cameron is a leading provider of flow equipment products, systems and services to worldwide oil, gas and process industries. (source: company press release or website)

Why We Like It:
No I haven't lost my mind - at least not yet. Anyone who does any sort of technical study on CAM will wonder why we're listing it as a bullish candidate here. Almost all of the technical signals and oscillators are bearish. The MACD is bearish. RSI is bearish. The P&F chart looks very bearish. However, at the same time CAM still has a long-term bullish up trend and bulls have been relatively consistent at buying dips near the rising 100-dma. This time the 100-dma is also bolstered by support at the $90.00 level. We're suggesting readers buy this dip today or maybe look for a bounce back above $93.00 as an entry point. Our target is the $99.00-100.00 range. More aggressive traders could aim for $105 but the stock does have pretty clear resistance near $100. Since we're fighting the "trend" in the technical picture we're going to list this as an aggressive, higher-risk play. FYI: CAM is due to split 2-for-1 on December 31st, 2007.

Suggested Options:
We are suggesting the January calls.

BUY CALL JAN 90.00 CAM-AR open interest=404 current ask $5.60
BUY CALL JAN 95.00 CAM-AS open interest=609 current ask $3.10

Picked on December 18 at $ 91.85
Change since picked: + 0.00
Earnings Date 01/31/08 (unconfirmed)
Average Daily Volume = 2.1 million

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Energen - EGN - close: 65.32 change: +2.05 stop: 62.75

Company Description:
Energen Corporation is a diversified energy holding company with headquarters in Birmingham, AL. Its two lines of business are the acquisition, development and exploration of domestic, onshore natural gas, oil and NGL reserves and natural gas distribution in central and north Alabama. (source: company press release or website)

Why We Like It:
This is another stock with some mixed signals but this time some of the short-term oscillators are showing EGN bouncing from an oversold condition. EGN dipped toward technical support at its 50-dma and the bottom of its rising, bullish channel. Traders bought the dip today and this looks like a chance to ride it back toward resistance near $70.00. Our target is the $69.50-70.00 range. We're suggesting a stop under the 50-dma. The P&F chart is bullish with a $74 target.

Suggested Options:
We are suggesting the January calls.

BUY CALL JAN 65.00 EGN-AM open interest=158 current ask $3.00
BUY CALL JAN 70.00 EGN-AN open interest=124 current ask $0.95

Picked on December 18 at $ 65.32
Change since picked: + 0.00
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume = 700 thousand

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Hologic - HOLX - close: 66.22 chg: +1.14 stop: 63.75

Company Description:
Hologic, Inc. is a diversified medical technologies company specializing in diagnostic imaging products and interventional devices dedicated to serving the healthcare needs of women. (source: company press release or website)

Why We Like It:
HOLX got some good news recently. The stock is being added to the NASDAQ-100 index. The addition is expected to occur on December 24th. All the funds and money managers who track the NDX will have to buy shares. We're surprised that HOLX hasn't moved further on the news. The stock appears to be breaking out from a sideways consolidation of higher lows and lower highs (in this case it's just an ugly shaped pennant formation). We see today's close over $66.00 as a new bullish entry point to buy calls. We're listing two targets. Our conservative target is the $69.50-70.00 range. Our more aggressive target is the $74.00-75.00 range.

Suggested Options:
We are suggesting the January calls.

BUY CALL JAN 65.00 QHX-AM open interest=4233 current ask $3.60
BUY CALL JAN 70.00 QHX-AN open interest=5155 current ask $1.40

Picked on December 18 at $ 66.22
Change since picked: + 0.00
Earnings Date 01/30/08 (unconfirmed)
Average Daily Volume = 2.8 million

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Noble Energy - NBL - close: 77.30 chg: +1.58 stop: 74.75

Company Description:
Noble Energy is one of the nation's leading independent energy companies and operates throughout major basins in the United States. (source: company press release or website)

Why We Like It:
NBL has been one of the leaders in the oil sector. The stock has rallied back to its all-time highs and is on the verge of a breakout. We're suggesting readers buy a breakout over resistance at $78.00. We're listing a trigger to buy calls at $78.25. If triggered our target is the $84.50-85.00 range. The P&F chart is bullish with an $86 target.

Suggested Options:
We're suggesting the January or February calls.

BUY CALL JAN 75.00 NBL-AO open interest=212 current ask $4.30
BUY CALL JAN 80.00 NBL-AP open interest=170 current ask $1.70

BUY CALL FEB 80.00 NBL-BP open interest=808 current ask $2.90
BUY CALL FEB 85.00 NBL-BQ open interest=126 current ask $1.35

Picked on December xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/26/08 (unconfirmed)
Average Daily Volume = 1.5 million
 

New Puts

None today.
 

New Strangles

None today.
 

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