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XLE None None

New Calls

Energy SPDR - XLE - close: 44.20 chg: -4.76 stop: 37.45

Why We Like It:
The XLE Select Sector Energy SPDRs is an exchange traded fund (ETF) for the oil, energy, gas and services sector. The XLE lost almost 10% today and looks like it could dip toward its October lows. The market is very oversold again and it's setting up for another one of those huge short-covering rallies. The 2008 October low was $38.84. We are suggesting that readers begin buying calls on the XLE in the $40.50-39.00 zone with a stop loss at $37.45. More conservative traders may want to use a much tighter stop loss. If triggered we're setting two targets. Our first target is $45.00. Our second target is $49.75.

Suggested Options:
We are suggesting the November calls. These options will be a lot less at our entry point (40.50).

BUY CALL NOV 40.00 XLE-KN open interest=1345 current ask $7.05
BUY CALL NOV 43.00 XLE-KQ open interest=1735 current ask $5.20
BUY CALL NOV 45.00 XLE-KS open interest=2340 current ask $4.10

Picked on October xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume = 47.7 million

New Puts

None today.

New Strangles

None today.

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