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New Plays

New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
None None BPOP
    GOOG

Play Editor's Note: The market rally today is great but remember we're only expecting a short-term bounce. It could last several days so don't be fooled. The overall trend in the market is still down. When we think the bounce is beginning to fail we'll start looking for shorts again.

It's earnings season so we're adding more strangles! If you're looking for more then consider an earnings strangle on MER or SLB.


New Calls

None today.
 

New Puts

None today.
 

New Strangles

Popular Inc. - BPOP - close: 5.82 change: +0.70 stop: n/a

Company Description:
Popular, Inc. is a full service financial services provider based in Puerto Rico with operations in Puerto Rico, the United States, the Caribbean and Latin America. (source: company press release or website)

Why We Like It:
BPOP is not a huge financial but there is still plenty of room to move when they report earnings on Friday morning. That means tomorrow is our only day to open strangle positions.

Suggested Options:
A strangle involves buying both an out-of-the-money call and an out-of-the-money put. We don't care what direction the stock goes as long as it moves one direction. If the stock moves far enough one side of our trade will rise in value and pay for the entire trade and make a profit.

We are suggesting the August options below. Our estimated cost is $0.65. We want to sell if either option hits $1.45 or more.

BUY CALL AUG 7.50 BQW-HU open interest= 20 current ask $0.25
-and-
BUY PUT AUG 5.00 BQW-TA open interest= 101 current ask $0.40

Picked on July 16 at $ 5.82
Change since picked: + 0.00
Earnings Date 07/18/08 (confirmed)
Average Daily Volume = 3.4 million

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Google Inc. - GOOG - close: 535.60 chg: +19.51 stop: n/a

Company Description:
GOOG is the titan of online search. They're so good at what they do the name of their company has become a verb.

Why We Like It:
We have been playing strangles on GOOG's quarterly earnings reports for years. Sometimes they work out amazingly well and there has been a few times they didn't. It's always a gamble but usually it's a good bet that GOOG will see significant volatility after its report. GOOG reports after the closing bell on Thursday (tomorrow) so we only have tomorrow to open positions.

Suggested Options:
A strangle involves buying both an out-of-the-money call and an out-of-the-money put. We don't care what direction the stock goes as long as it moves one direction. If the stock moves far enough one side of our trade will rise in value and pay for the entire trade and make a profit.

We are suggesting the August options below. Our estimated cost is $19.10. We want to sell if either option hits $30.00 or more.

BUY CALL AUG 590.00 GOO-HR open interest=1290 current ask $9.90
-and-
BUY PUT AUG 480.00 GOP-TI open interest= 726 current ask $9.20

Picked on July 16 at $535.60
Change since picked: + 0.00
Earnings Date 07/17/08 (confirmed)
Average Daily Volume = 4.5 million
 

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