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GLD AAPL None

New Calls

Gold ETF - GLD - cls: 91.50 chg: +0.64 stop: 89.45

Company Description:
The StreetTRACKS Gold Trust is an exchange traded fund (ETF) that reflects the price of gold bullion.

Why We Like It:
Technically the GLD has produced an inverse (bullish) version of a head-and-shoulders pattern. The Point & Figure chart is bullish. Plus, if the market does see a sharp, capitulation sell-off there could be a panic rally into gold. We're suggesting August calls here with a stop loss at $89.45. Our target is the $97.00 mark but the $95.00 level could be overhead resistance and more conservative traders may want to jump out near $95. Keep an eye on the U.S. dollar. If the dollar rallies sharply it will push gold lower.

Suggested Options:
We are suggesting the August calls. Strikes are available at $1.00 increments.

BUY CALL AUG 90.00 GLD-HL open interest= 667 current ask $3.80
BUY CALL AUG 93.00 GLD-HO open interest= 698 current ask $2.35
BUY CALL AUG 96.00 GLD-HR open interest= 127 current ask $1.45

Picked on July 09 at $ 91.50
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume = 9.8 million
 

New Puts

Apple Inc. - AAPL - close: 174.25 chg: -5.30 stop: 181.01

Company Description:
Apple Inc. produces Mac computers, iPods, the iPhone and recently sold their 5 billionth song on thei iTunes store.

Why We Like It:
We know that just about everyone loves this stock but short-term AAPL looks poised to retest its 200-dma. The stock produced a classic failed rally near resistance at $180 and its 50-dma. We're suggesting puts now with a stop loss above today's high. Our target is $165.00. More aggressive traders could aim for the $160 region. We will be expecting a bounce either at the 200-dma or at $160. If we don't see some follow through lower relatively soon we're going to exit early.

Suggested Options:
We are suggesting the August puts but we plan to exit ahead of the July 21st earnings report.

BUY PUT AUG 175.00 APV-TO open interest=3352 current ask $11.65
BUY PUT AUG 170.00 APV-TN open interest=4125 current ask $ 9.30
BUY PUT AUG 165.00 APV-TM open interest=4197 current ask $ 7.30

Picked on July 09 at $174.25
Change since picked: + 0.00
Earnings Date 07/21/08 (confirmed)
Average Daily Volume = 31.4 million
 

New Strangles

None today.
 

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