Option Investor
New Plays

New Option Plays

HAVING TROUBLE PRINTING?
Printer friendly version
Call Options Plays
Put Options Plays
Strangle Options Plays
RIMM MICC None
  NYX  

Play Editor's Note: This is not the best environment to be opening a lot of new bullish plays. However, there were a few candidates that definitely caught my eye. BDX and VFC look like they have potential as possible call option candidates. Plus, if you're feeling really adventurous you could buy calls on the sell-off in Goldman Sachs (GS). Shares of GS pulled back to July 2008 lows and started to bounce. I would use a stop under today's low.


New Calls

Research In Motion - RIMM - cls: 132.30 chg: +2.02 stop: 124.65

Company Description:
Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. (source: company press release or website)

Why We Like It:
We were bullish on RIMM during the early August rally but then decided to cut it loose a couple of days ago when it looked like shares were going to breakdown under $125.00. The stock has recovered so we're suggesting readers buy the bounce. If you don't want to chase it here then look for a dip into the $130-128 region. We are suggesting a stop loss at $124.65, just under Tuesday's low. We have two targets. Our first target is $143.50. Our second target is the $155.00-160.00 zone. However, readers should expect RIMM to encounter some resistance in the $145-150 area.

Suggested Options:
We are suggesting the September or October calls. There are only four weeks left on September options.

BUY CALL SEP 135.00 RUL-IW open interest=12787 current ask $5.25
BUY CALL SEP 140.00 RUL-IH open interest=15712 current ask $3.35
BUY CALL SEP 145.00 RUL-II open interest=13447 current ask $2.01

BUY CALL OCT 140.00 RUL-JH open interest= 497 current ask $7.90
BUY CALL OCT 150.00 RUL-JJ open interest= 311 current ask $4.65

Picked on August 21 at $132.30
Change since picked: + 0.00
Earnings Date 09/25/08 (unconfirmed)
Average Daily Volume = 19.1 million
 

New Puts

Millicom Intl. - MICC - cls: 80.07 chg: -0.63 stop: 80.75

Company Description:
Millicom International Cellular S.A. is a global telecommunications group with mobile telephony operations in Asia, Latin America and Africa. It currently has mobile operations and licenses in 16 countries. The Groups mobile operations have a combined population under license of approximately 291 million people. (source: company press release or website)

Why We Like It:
It looks like the oversold bounce in MICC is on its last legs and poised to roll over. The stock was crushed back in July when MICC missed earnings estimates. The bounce made it back to the top of the gap down, which is typically resistance. Aggressive traders might want to jump in early. We want to see a new relative low. Our suggested entry point to buy puts is $78.49. If triggered we're listing two targets. Target number one is $75.05. Target number two is $72.50.

Suggested Options:
We are suggesting the September puts. September options expire in four weeks.

BUY PUT SEP 80.00 CQD-UP open interest= 127 current ask $3.80
BUY PUT SEP 75.00 CQD-UO open interest= 121 current ask $1.90

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume = 1.0 million

---

NYSE Euronext - NYX - close: 38.77 change: -1.12 stop: 41.05

Company Description:
NYSE Euronext (NYX) operates the worlds leading and most liquid exchange group, and seeks to provide the highest levels of quality, customer choice and innovation. Its family of exchanges, located in six countries, includes the New York Stock Exchange, the world's largest cash equities market; Euronext, the Eurozone's largest cash equities market; Liffe, Europe's leading derivatives exchange by value of trading; and NYSE Arca Options, one of the fastest growing U.S. options trading platforms. (source: company press release or website)

Why We Like It:
NYX is a momentum play. The stock is in a long-term down trend and shares just recently broke to new lows. Investors are worried that the government might impose regulations on the exchanges that could impact their profitability. Plus analysts have been downgrading the stock following its latest merger. We are suggesting put positions now with the stock under $40.00. We have two targets. Our first target is $35.15. Our second target is $32.50. More conservative traders will want to consider a stop loss a lot closer to $40.00.

Suggested Options:
We are suggesting the September puts.

BUY PUT SEP 40.00 NYX-UH open interest=4189 current ask $2.93
BUY PUT SEP 35.00 NYX-UG open interest=2873 current ask $0.77

Picked on August 21 at $ 38.77
Change since picked: + 0.00
Earnings Date 11/03/08 (unconfirmed)
Average Daily Volume = 4.8 million
 

New Strangles

None today.
 

New Play Archives