New Plays, Tuesday, 02/26/2008
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Play Editor's Note: We're definitely seeing more bullish
candidates than bearish ones this week. PKX might be a play right here or above
its 200-dma. HES, CVX, and JLL also look like potential bullish candidates. Keep
an eye on UNP for a breakout over $130.
CNOOC - CEO - cls: 170.73 chg: +2.73 stop: 159.49
CNOOC Limited incorporated in Hong Kong in August 1999, was listed on the New
York Stock Exchange (code: CEO) and The Stock Exchange of Hong Kong Limited
(code: 0883) on 27 and 28 February 2001, respectively. The Company was admitted
as a constituent stock of the Hang Seng Index in July 2001. The Group is China's
largest producer of offshore crude oil and natural gas and one of the largest
independent oil and gas exploration and production companies in the world. The
engages in oil and natural gas exploration, development, production
and sales. (source: company press release or website)
Why We Like It:
Oil stocks are breaking out so we thought we'd add one of the biggest, CEO.
Traders recently bought the dip near $160 as broken resistance became new
support. Today's move is a bullish breakout over the $170 level and its 100-dma.
Short-term technicals are also bullish and the Point & Figure chart is positive
with a $224 price target. We are suggesting new call positions now although a
dip in the $167-164 zone would also be an attractive entry point. We are listing
Our first target is the $188.00-190.00 zone. Our second target is
the $208-210 zone. We would expect some resistance and a pull back on CEO's
initial test of the $185 region and the $200 region. Our $208 price target is
pretty aggressive given our three to four week time frame. We do not want to
hold over earnings. Plan on exiting the majority of the position at the first
We are suggesting the March or April calls. Aprils would be our preference.
Remember, it is up to the individual trader to decide which month and which
strike price best suits your trading style and risk.
Note: some of these options have non-standard suffixes. Check with your broker
on the symbols. We do not yet see any April strikes above $195.
BUY CALL MAR 165 CEO-CM open interest=299 current ask $13.10
BUY CALL MAR 170 CEO-CN open interest=637 current ask $10.30
BUY CALL MAR 175 CEO-CO open interest=501 current ask $ 7.70
BUY CALL MAR 180 CEO-CV open interest=492 current ask $ 5.90
BUY CALL MAR 185 CEO-CQ open interest=374 current ask $ 4.30
BUY CALL MAR 190 CEO-CX open interest=783 current ask $ 3.00
BUY CALL APR 170 CEO-DN open interest= 14 current ask $15.40
BUY CALL APR 175 CEO-DO open interest= 0 current ask $13.20
BUY CALL APR 180 CEO-DV open interest= 0 current ask $11.00
BUY CALL APR 185 CEO-DW open interest= 0 current ask $ 9.20
BUY CALL APR 190 CEO-DX open interest= 0 current ask $ 7.60
BUY CALL APR 195 CEO-DY open interest= 0 current ask $ 6.00
Picked on February 26 at $170.73
Change since picked: + 0.00
Earnings Date 03/19/08 (unconfirmed)
Average Daily Volume = 509 thousand