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New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
None ATK None
  CSX  
  DDM  
  ENR  
  MON  

New Calls

None today.
 

New Puts

Alliant Tech - ATK - close: 81.39 change: -3.39 stop: 83.05

Why We Like It:
ATK is rolling over and shares look poised to collapse under $80.00 again. Aggressive traders might want to consider new positions right here. We're suggesting readers buy puts if ATK hits $79.75 (or you could wait for a drop under $79.15, which is under the Oct. 16th low). If we are triggered at $79.75 our target is the 74.50 mark, just above the October low. We do not want to hold over the late October earnings report.

Suggested Options:
We are suggesting the November puts. Our entry point is $79.75.

BUY PUT NOV 80.00 ATK-WP open interest=116 current ask $4.10
BUY PUT NOV 75.00 ATK-WO open interest= 46 current ask $2.25

Picked on October xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/30/08 (confirmed)
Average Daily Volume = 340 thousand

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CSX Corp. - CSX - close: 45.07 change: -0.50 stop: 46.75

Why We Like It:
CSX, a railroad company, is already on this newsletter as a bullish play but we're waiting for a dip near its lows around $40.00. Instead of just waiting we're going to scalp a few points on the way down. Today's performance produced a short-term bearish double top pattern. We're suggesting put options now with a stop above today's high. Our exit target is $40.50 at which points we'd take profits in the puts and switch to calls.

Suggested Options:
We are suggesting the November puts.

BUY PUT NOV 45.00 CSX-WI open interest=6905 current ask $3.20
BUY PUT NOV 40.00 CSX-WH open interest=3549 current ask $1.35

Picked on October 21 at $ 45.07
Change since picked: + 0.00
Earnings Date 10/14/08 (confirmed)
Average Daily Volume = 6.9 million

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Ultra Dow30 ProShares - DDM - close: 36.27 chg: -1.72 stop: 38.55

Why We Like It:
The DDM is the Ultra-long ETF on the DJIA, which normally moves about twice the performance of the DJIA. I think the DJIA is headed toward the October lows so we're suggesting puts on the DDM. We'll use a stop loss at $38.55. More conservative traders might want to use a tighter stop above today's high. Our target is the $30.50-30.00 zone.

Suggested Options:
We are suggesting the November puts.

BUY PUT NOV 33.00 HXD-WG open interest= 284 current ask $2.80
BUY PUT NOV 30.00 HXD-WD open interest= 283 current ask $1.60

Picked on October 21 at $ 36.27
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume = 6.9 million

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Energizer Holdings - ENR - close: 58.40 chg: -2.60 stop: 61.65

Why We Like It:
We've been reluctant to play the trend following such a sharp sell-off but the market is struggling to build on its bounces. Shares of ENR are just struggling to bounce. The stock continues to under perform and there doesn't appear to be any significant support until the $50.00 region. We're suggesting readers buy puts now with a stop above this week's high. Our target is the $52.00-50.00 zone. We do not want to hold over the late October earnings report.

Suggested Options:
We're suggesting the November puts.

BUY PUT NOV 60.00 ENR-WL open interest= 232 current ask $4.90
BUY PUT NOV 55.00 ENR-WK open interest= 54 current ask $2.55
BUY PUT NOV 50.00 ENR-WU open interest= 43 current ask $1.20

Picked on October 21 at $ 58.40
Change since picked: + 0.00
Earnings Date 10/30/08 (confirmed)
Average Daily Volume = 838 thousand

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Monsanto - MON - close: 85.38 chg: -4.07 stop: 90.15

Why We Like It:
We are going to take another swing at fertilizer-chemical stock MON. Shares exploded higher on Monday during the short-covering rally but the rally failed at $90.00 resistance. We're suggesting puts right here under $90.00. We'll use two targets. Our first target is $76.00. Our second target is 70.50. Be advised that MON could see a lot of volatility on Thursday following a couple of earnings reports from rivals in the sector.

Suggested Options:
We are suggesting the November puts.

BUY PUT NOV 80.00 MON-WP open interest=5082 current ask $5.30
BUY PUT NOV 75.00 MON-WO open interest=1571 current ask $3.80
BUY PUT NOV 70.00 MON-WN open interest=1641 current ask $2.65

Picked on October 21 at $ 85.38
Change since picked: + 0.00
Earnings Date 12/31/08 (unconfirmed)
Average Daily Volume = million
 

New Strangles

None today.
 

New Play Archives