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New Plays

New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
FWLT None None
JEC    
JOYG    
PTR    

Play Editor's Note: The market's bullish reversal looks like a good spot for short-term bullish positions. A few stocks were watching as potential candidates are SLB, MUR, GENZ, ESRX, POT and VMI.


New Calls

Foster Wheeler - FWLT - cls: 142.90 chg: -0.59 stop: 132.99

It was a very volatile day for FWLT. No, you're not having a case of déjà vu. We did add FWLT last night as a new call candidate with a suggested entry point at $140.50. Unfortunately, the intraday dip blew right past the $140 level and hit our stop. The rebound was so sharp that we're trying again. We're suggesting readers buy this bounce and we're suggesting a stop under today's low. If there is no follow through higher tomorrow we will strongly consider a very quick exit. Our first target is the $149.50-150.00 range. Our second target is the $158.00-160.00 zone. FYI: FWLT is due to split 2-for-1 on January 22nd.

Suggested Options:
We are suggesting the February calls. Our suggested entry point is $140.50. Remember, it's up to the individual trader to decide which month and which strike price best suits your trading style and risk.

BUY CALL FEB 135 UFB-BU open interest= 793 current ask $16.10
BUY CALL FEB 140 UFB-BV open interest= 570 current ask $13.30
BUY CALL FEB 145 UFB-BY open interest= 554 current ask $10.70
BUY CALL FEB 150 UFB-BZ open interest= 899 current ask $ 8.40

Picked on January 09 at $142.90
Change since picked: + 0.00
Earnings Date 02/27/08 (unconfirmed)
Average Daily Volume = 1.7 million

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Jacobs Engineering - JEC - cls: 86.31 chg: -1.59 stop: 81.65

Company Description:
Jacobs, with about 54,000 employees and revenues exceeding $8.0 billion, provides technical, professional, and construction services globally. (source: company press release or website)

Why We Like It:
Investors have been pretty consistent with buying dips in JEC near its rising 100-dma. They bought the dip again today. This looks like another entry point to buy calls. However, this might be considered a more aggressive play since the stock has been volatile lately and shares should have resistance near $90.00. Our target is the $94.00-95.00 range. We are suggesting a stop loss under today's low. More aggressive traders may want to aim for $100. This is going to be a short-term play since we plan to exit ahead of the late January earnings report.

Suggested Options:
We're suggesting the February calls.

BUY CALL FEB 85.00 JEC-BQ open interest= 78 current ask $7.20
BUY CALL FEB 90.00 JEC-BR open interest= 37 current ask $4.90

Picked on January 09 at $ 86.31
Change since picked: + 0.00
Earnings Date 01/22/08 (unconfirmed)
Average Daily Volume = 1.4 million

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Joy Global - JOYG - cls: 60.19 chg: -1.12 stop: 57.49

Company Description:
Joy Global is a world-wide leader in manufacturing, distributing and servicing equipment for surface mining through P&H Mining Equipment and underground mining through Joy Mining Machinery. (source: company press release or website)

Why We Like It:
The market's intraday weakness pulled JOYG toward the bottom of its rising channel. JOYG's rebound from the channel and its rising 50-dma looks like a new bullish entry point. We're suggesting a stop loss under today's low. We have two targets. Our first target is $67.00. Our second target is $71.50. We do not want to hold over the late February earnings report.

Suggested Options:
We are suggesting the February or April calls.

BUY CALL FEB 55.00 JQY-BK open interest= 38 current ask $7.50
BUY CALL FEB 60.00 JQY-BL open interest=453 current ask $4.40
BUY CALL FEB 65.00 JQY-BM open interest=459 current ask $2.30

BUY CALL APR 60.00 JQY-DL open interest=2068 current ask $7.00
BUY CALL APR 65.00 JQY-DM open interest=11722 current ask $4.80

Picked on January 09 at $ 60.19
Change since picked: + 0.00
Earnings Date 02/28/08 (unconfirmed)
Average Daily Volume = 1.7 million

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PetroChina - PTR - cls: 182.12 chg: +6.82 stop: 174.49

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:
PTR has spent weeks consolidating sideways and it looks like the stock may have produced a double-bottom near $170. Today's breakout over short-term resistance near $180 looks like a new bullish entry point to buy calls. There is potential resistance about every $10 ($190, $200) and the 50-dma. Our first target is the $198.00-200.00 range.

Suggested Options:
We are suggesting the February or March calls.

BUY CALL FEB 175 PTR-BO open interest= 57 current ask $14.90
BUY CALL FEB 180 PTR-BP open interest=145 current ask $12.10
BUY CALL FEB 185 PTR-BQ open interest=339 current ask $ 9.80
BUY CALL FEB 190 PTR-BU open interest= 63 current ask $ 7.70

BUY CALL MAR 180 PTR-CP open interest=575 current ask $15.90
BUY CALL MAR 190 PTR-CU open interest=614 current ask $11.10

Picked on January 09 at $182.12
Change since picked: + 0.00
Earnings Date 03/10/08 (unconfirmed)
Average Daily Volume = 1.0 million
 

New Puts

None today.
 

New Strangles

None today.
 

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