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New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
RIMM None None
SPWR    
UNG    

New Calls

Research In Motion - RIMM - cls: 119.22 chg: +3.16 stop: 112.45

Company Description:
Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, Internet and intranet-based applications. (source: company press release or website)

Why We Like It:
The iPhone was billed as a Blackberry killer but shares of RIMM have been resilient and the company is fighting back with some new models of its own. The stock has been rebounding with a bullish pattern of higher lows and it looks poised to breakout over resistance near $120.00 soon. We are suggesting that readers buy calls at $120.50. More conservative traders may want to wait for a move over the early July high around $122.16 but if you do you'll need to adjust your stop loss. We do expect some resistance near the bottom of RIMM's June gap down around $129.00. We're setting two targets. Our first target is $129.00. Our second target is $137.00.

Suggested Options:
We are suggesting the September calls.

BUY CALL SEP 120.00 RUL-ID open interest=6863 current ask $8.40
BUY CALL SEP 125.00 RUL-IE open interest=4860 current ask $6.15
BUY CALL SEP 130.00 RUL-IV open interest=9375 current ask $4.30

Picked on July xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 09/25/08 (unconfirmed)
Average Daily Volume = 18.6 million

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SunPower - SPWR - close: 80.38 change: +3.25 stop: 76.45

Company Description:
SunPower Corporation designs, manufactures and delivers high-performance solar electric systems worldwide for residential, commercial and utility-scale power plant customers. SunPower high-efficiency solar cells and solar panels generate up to 50 percent more power than conventional solar technologies and have a uniquely attractive, all-black appearance. (source: company press release or website)

Why We Like It:
Both short-term and long-term technicals are suggesting that SPWR is poised to rally. The Point & Figure chart is bullish with a $97 target. Short-term has seen SPWR rebound back toward resistance in the $80-81 zone and the stock has been slowly chewing through a number of its moving averages. It would be tempting to buy today's rally and close over $80.00 but we want to see more confirmation. We're suggesting readers use a trigger to buy calls at $81.75, which would be above the mid July peak. If triggered our target is the $89.75 mark (or the 200-dma). We are starting the play with a wide stop loss because shares can be so volatile.

Suggested Options:
We are suggesting the September calls.

BUY CALL SEP 80.00 QSU-IP open interest=4204 current ask $7.50
BUY CALL SEP 85.00 QSU-IQ open interest=2024 current ask $5.30
BUY CALL SEP 90.00 QSU-IR open interest=2175 current ask $3.70

Picked on July xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/16/08 (unconfirmed)
Average Daily Volume = 2.8 million

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United States Nat.Gas - UNG - cls: 43.39 chg: +0.86 stop: 40.99

Company Description:
The United States Natural Gas (UNG) is an exchange traded fund (ETF) that mimics the performance of near month natural gas futures traded on the NYMEX.

Why We Like It:
Wednesday was a big volume day for the UNG. This ETF on natural gas produced a bullish engulfing candlestick pattern at the bottom of its sell-off. This is usually seen as a one-day bullish reversal pattern. More conservative traders may want to wait and see where the UNG closes tomorrow before initiating positions since such patterns usually need some confirmation. We're suggesting aggressive, higher-risk bullish positions now. The big volume day and the bounce higher definitely looks like a potential bottom. However, I want to warn readers that trying to pick a bottom in the commodities lately has been pretty hazardous. We'll play with a stop loss at $40.99, just under today's low, but you may want to use a tighter stop. Our target is the $48.40-50.00 zone.

Suggested Options:
We are suggesting the September calls.

BUY CALL SEP 42.00 UNG-IP open interest= 286 current ask $4.40
BUY CALL SEP 45.00 UNG-IS open interest=2620 current ask $3.20
BUY CALL SEP 48.00 UNG-IV open interest= 248 current ask $2.20

Picked on July 30 at $43.39
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume: 2.9 million
 

New Puts

None today.
 

New Strangles

None today.
 

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