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New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
None COF None
  ETFC  
  QQQQ  
  SPY  

New Calls

None today.
 

New Puts

Capital One - COF - close: 43.87 change: -1.77 stop: 46.41

Company Description:
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries collectively had $87.7 billion in deposits and $148.0 billion in managed loans outstanding as of March 31, 2008. (source: company press release or website)

Why We Like It:
Financials continue to show weakness and most industry experts believe there is more pain ahead. One analyst note out today suggested that U.S. banks need to raise another $65 billion in capital. Since the credit crisis and the housing slump isn't over yet investors are not going to be excited to buy COF, who focuses on consumer credit. The stock failed at the top of its bearish channel today. This looks like a new entry point for puts. We're suggesting a tight stop above today's high. We have two targets. Our first target is $40.25. Our second target is $37.75. The Point & Figure chart has a $36 target.

Suggested Options:
We are suggesting the July puts.

BUY PUT JUL 45.00 COF-SI open interest=4515 current ask $3.80
BUY PUT JUL 40.00 COF-SH open interest=4506 current ask $1.80

Picked on June 17 at $ 43.87
Change since picked: + 0.00
Earnings Date 07/17/08 (unconfirmed)
Average Daily Volume = 8.3 million

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E*Trade - ETFC - close: 3.68 change: -0.10 stop: 3.91

Company Description:
The E*TRADE FINANCIAL family of companies provides financial services including trading, investing and banking for retail and institutional customers. (source: company press release or website)

Why We Like It:
The broker-dealers continue to show weakness and almost anything financial is getting killed. ETF has broken down under support (see chart) and now the oversold bounce has reversed. This is a new entry point for bearish positions. We're suggesting a relatively tight stop above today's high. We have two targets. Our first target is $3.25. Our second target is $3.05.

Suggested Options:
We're suggesting the July puts.

BUY PUT JUL 4.00 EUS-SH open interest=11583 current ask $0.50
BUY PUT JUL 3.00 EUS-SG open interest= 6443 current ask $0.15

Picked on June 17 at $ 3.68
Change since picked: + 0.00
Earnings Date 07/23/08 (unconfirmed)
Average Daily Volume = 20.8 million

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PowerShares QQQ - QQQQ - close: 48.54 change: -0.26 stop: 49.26

Company Description:
This is an Exchange Traded Fund that mimics the trading in the Nasdaq-100 index (NDX).

Why We Like It:
The bounce in the market has failed. The tech-heavy NASDAQ will probably catch up to the declines in the DJIA and S&P 500. We are suggesting bearish positions with a relatively tight stop. Our target is $46.10. The $46.00 level and its 100-dma might be support.

Suggested Options:
We are suggesting the July puts. Strikes are available at $1.00 increments.

BUY PUT JUL 49.00 QQQ-SW open interest=129276 current ask $1.53
BUY PUT JUL 47.00 QQQ-SU open interest=103902 current ask $0.78
BUY PUT JUL 46.00 QQQ-ST open interest=201253 current ask $0.54

Picked on June 17 at $ 48.54
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume = 133 million

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S&P 500 SPDR - SPY - close: 135.57 change: -0.66 stop: 137.26

Company Description:
The SPDR is an exchange traded fund (ETF) that represents the S&P 500 index.

Why We Like It:
The S&P 500 just produced a short-term bearish reversal pattern inside its bearish trend of lower highs and lower lows. We're suggesting puts with a stop above today's high. Our target is the $132.40 mark, just above the mid April lows.

Suggested Options:
We're suggesting the July puts. If the SPY hits our target the $136 strike should be over $5.00 and the $132 strike should be around closer to $3.00.

BUY PUT JUL 136.00 SFB-SF open interest= 53481 current ask $3.60
BUY PUT JUL 134.00 SFB-SD open interest= 53799 current ask $2.72
BUY PUT JUL 132.00 SFB-SB open interest= 61116 current ask $2.05

Picked on June 17 at $135.57
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume = 197 million
 

New Strangles

None today.
 

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