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New Plays

New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
ADBE None None
MT    

Play Editor's Note: Aggressive traders may want to check out the coal stocks and fertilizer stocks. Many of them have been sold off extremely hard and are just now starting to bounce from potential support.


New Calls

Adobe Systems - ADBE - close: 43.34 chg: +2.05 stop: 39.99

Company Description:
Adobe revolutionizes how the world engages with ideas and information anytime, anywhere and through any medium. For more information visit www.adobe.com. (source: company press release or website)

Why We Like It:
We are suggesting call options on ADBE's breakout over short-term resistance at $42.00. However, our preferred entry point would be to wait for a dip back toward $42.50 or $42.00. ADBE does have what could be significant resistance near $45.00. If the NASDAQ can keep the rally alive then we would expect ADBE to surge past the $45 mark. Our target is the $47.50-50.00 zone. More conservative traders may want to use a stop loss closer to $40.50 or $40.75.

Suggested Options:
We are suggesting the September calls.

BUY CALL SEP 42.50 AEQ-IV open interest= 323 current ask $2.80
BUY CALL SEP 45.00 AEQ-II open interest=1023 current ask $1.55

Picked on August 05 at $ 43.34
Change since picked: + 0.00
Earnings Date 09/16/08 (unconfirmed)
Average Daily Volume = 6.5 million

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ArcelorMittal - MT - close: 83.27 change: +1.67 stop: 79.95

Company Description:
ArcelorMittal is the leader in all major global steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. With an industrial presence in over 20 countries spanning four continents, the Company covers all of the key steel markets, from emerging to mature. (source: company press release or website)

Why We Like It:
Several of the steel stocks have just endured some incredible swings. The latest swing was a sharp and painful sell-off. Now the group looks short-term oversold and due for a bounce. MT began that bounce today as investors bought the dip near its 200-dma. This is an aggressive, higher-risk play. There is no way to predict if the huge whipsaws are over. If they're not the next "whip" should be higher. We're try and reduce our risk with a relatively tight stop loss at $79.95. More conservative traders could use today's low (80.94). Our short-term target is the $88.50-90.00 zone. MT appears to have resistance near $90 and its 100-dma.

Suggested Options:
We are suggesting the September calls.

BUY CALL SEP 80.00 MT-IP open interest=1028 current ask $7.40
BUY CALL SEP 85.00 MT-IQ open interest=2241 current ask $4.90

Picked on August 05 at $ 83.27
Change since picked: + 0.00
Earnings Date 11/13/08 (unconfirmed)
Average Daily Volume = 4.5 million
 

New Puts

None today.
 

New Strangles

None today.
 

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