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New Option Plays

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None LAMR None
  VLO  

New Calls

None today.
 

New Puts

Lamar Advertising - LAMR - cls: 36.47 chg: -1.14 stop: 38.01

Company Description:
Founded in 1902, Lamar, one of the nations largest providers of out-of-home advertising, operates more than 150 outdoor advertising companies in more than 40 states and Puerto Rico. Lamar has more than 70 transit franchises reaching driving audiences across the U.S., Canada and Puerto Rico through billboards, digital billboards, bus shelters, benches and buses. (source: company press release or website)

Why We Like It:
LAMR's bearish long-term trend of lower highs has run into a new problem with technical resistance at the 200-dma. Shares just reversed again on Tuesday and now the stock is breaking down under its 50-dma. We're tempted to buy puts now. However, the $36.00 level looks like it might be short-term support. We're suggesting a trigger to buy puts at $35.90. If triggered our target is 31.50 mark. More aggressive traders could aim for a new relative low.

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 35.00 LJQ-VG open interest=5659 current ask $1.70
BUY PUT OCT 00.00 LJQ-VF open interest=2877 current ask $0.40

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/06/08 (unconfirmed)
Average Daily Volume = 1.4 million

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Valero Energy - VLO - close: 30.90 chg: +0.39 stop: 32.01

Company Description:
Valero Energy Corporation is a Fortune 500 company based in San Antonio, Texas, and incorporated in Delaware. The company has approximately 22,000 employees and assets valued at $38 billion.
The largest refiner in North America, Valero has an extensive refining system with a throughput capacity of approximately 3.1 million barrels per day. (source: company press release or website)

Why We Like It:
We can easily see how the bulls might declare today a potential entry point to buy VLO after forming a bullish double-bottom pattern. Shares bounced from a test of the $30 level back in July and shares rebounded again today. However, the long-term trend remains bearish. VLO and the rest of the refiners could suffer as Americans continue to cut back on demand and the rest of the world won't help since it's heading into a global slow down. We suspect that VLO will actually breakdown and begin another leg lower. We're suggesting a trigger to buy puts at $28.99. If triggered we will have two targets. Our first target is $25.25. Our second target is $21.50.

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 30.00 VLO-VF open interest=1918 current ask $2.22
BUY PUT OCT 25.00 VLO-VE open interest=2103 current ask $0.60

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/04/08 (unconfirmed)
Average Daily Volume = 11.7 million
 

New Strangles

None today.
 

New Play Archives