Option Investor
New Plays

New Option Plays

HAVING TROUBLE PRINTING?
Printer friendly version
Call Options Plays
Put Options Plays
Strangle Options Plays
USM None None
USO    

New Calls

United States Cellular - USM - cls: 72.74 change: +2.57 stop: 67.89

Company Description:
U.S. Cellular is the nation's sixth-largest wireless service carrier, providing wireless service to six million customers in 26 states. (source: company press release or website)

Why We Like It:
The January sell-off in USM pulled the stock back to very long-term and what should be very tough support (see chart). Shares bounced and readers could probably buy positions now. However, we would much rather jump in on a dip. Our suggested entry point will be a dip into the $71.00-70.00 zone. We'll put the stop loss under the recent low. Our target is the November low in the $74.50-75.00 range. More aggressive traders could easily aim for the $77.50-80.00 zone.

Suggested Options:
We are suggesting the February calls although March options would work just as well. Our suggested entry point is $71.00.

BUY CALL FEB 65.00 USM-BM open interest= 0 current ask $9.20
BUY CALL FEB 70.00 USM-BN open interest= 0 current ask $5.80
BUY CALL FEB 75.00 USM-BO open interest=31 current ask $3.10

Picked on January xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/26/08 (unconfirmed)
Average Daily Volume = 153 thousand

---

United States Oil Fund - USO - cls: 70.93 chg: +1.43 stop: 68.59

Company Description:
The USO or United States Oil Fund is an exchanged traded fund (ETF) that seeks to mimic the performance of the spot price for West Texas Intermediate (WTI) light, sweet crude oil.

Why We Like It:
It looks like crude oil has found support at its rising 100-dma. This ETF has broken its two-week trendline of lower highs. We're suggesting calls at current levels. Our short-term target is the $74.50-75.00 range. More aggressive traders could easily aim for the $77.50-79.00 region.

Suggested Options:
We are suggesting the February calls. Strikes are available at every dolllar.

BUY CALL FEB 70.00 UNA-BR open interest=1797 current ask $2.75
BUY CALL FEB 72.00 UNA-BT open interest=1084 current ask $1.80
BUY CALL FEB 74.00 UNA-BV open interest= 454 current ask $1.10

Picked on January 24 at $ 70.93
Change since picked: + 0.00
Earnings Date 00/00/00 (unconfirmed)
Average Daily Volume = 3.2 million
 

New Puts

None today.
 

New Strangles

None today.
 

New Play Archives