Option Investor
New Plays

New Option Plays

HAVING TROUBLE PRINTING?
Printer friendly version
Call Options Plays
Put Options Plays
Strangle Options Plays
None JEC None
  ROP  

New Calls

None today.
 

New Puts

Jacobs Engineering - JEC - cls: 69.35 chg: -1.12 stop: see below

Company Description:
Jacobs, with over 55,000 employees and revenues exceeding $10.0 billion, provides technical, professional, and construction services globally. (source: company press release or website)

Why We Like It:
The bearish trend of lower highs in JEC has finally produced a breakdown under round-number support at $70.00. The recent weakness in this stock has also produced some new technical sell signals. The Point & Figure chart is already bearish with a $59 target. While it might be tempting to buy puts on JEC under $70.00 the stock does have another level of support in the $67.00-67.50 zone. We are going to list two different entry points to try and trade the bearish trend in JEC. Entry point number one will be $66.90. Entry point number two will be a failed rally under its 50-dma. However, since the 50-dma is a moving target we're going to use the $74.00-76.00 zone as our second entry point. If triggered at $66.90 our stop loss will be $70.51. If triggered at $74.00 our stop loss will be $77.01. Our target is the $60.50 mark.

Suggested Options:
We are suggesting the October puts. It is up to the individual trader to decide which month and which strike price best suits your trading style and risk.

BUY PUT OCT 70.00 JEC-VN open interest=653 current ask $4.70
BUY PUT OCT 65.00 JEC-VM open interest=252 current ask $2.55

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/05/08 (unconfirmed)
Average Daily Volume = 1.6 million

---

Roper Industries - ROP - cls: 58.19 chg: -1.02 stop: 60.55

Company Description:
Roper Industries is a market-driven, diversified growth company with trailing twelve month revenues of $2.2 billion, and is a component of the Fortune 1000, S&P MidCap 400 and the Russell 1000 Indexes. Roper provides engineered products and solutions for global niche markets, including water, energy, radio frequency and research/medical applications. (source: company press release or website)

Why We Like It:
ROP is also suffering from a bearish trend of lower highs. The recent consolidation near $60.00 almost looks like a bear flag pattern. The bounce failed yesterday and the stock sank to a new relative low today. We're suggesting new put positions now or on another failed rally/bounce near $60.00. Normally we would target potential psychological support near $55.00 but it looks like ROP has support near $54.00 instead. Our target is the $54.25 mark. The Point & Figure chart is bearish with a $45 target but the P&F chart also shows some support near $53.00.

Suggested Options:
We are suggesting the October puts. It is up to the individual trader to decide which month and which strike price best suits your trading style and risk.

Note: the spreads on these options are a little wide and option volume is light. Readers should consider this a slightly more aggressive trade.

BUY PUT OCT 60.00 ROP-VL open interest= 7 current ask $3.50
BUY PUT OCT 55.00 ROP-VK open interest=15 current ask $1.45

Picked on September 03 at $ 58.19
Change since picked: + 0.00
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume = 664 thousand
 

New Strangles

None today.
 

New Play Archives