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New Option Plays
Call Options Plays
Put Options Plays
Strangle Options Plays
AAPL None None
FCX    
     
     
     
     
     


NEW DIRECTIONAL CALL PLAYS
Apple Inc. - AAPL - close: 96.44 change: +6.32 stop: 89.90

Why We Like It:
AAPL sank toward its October lows and bounced sharply. Volume came in above average on the rebound, which is normally bullish. We normally don't like to chase a big move like this but AAPL is poised to make a run toward the top of its trading range.

We're suggesting readers buy calls with a $110.00 target and a stop loss at $89.90.

Note, an alternative trading idea would be to sell puts. You could sell puts like the December 95s for $8.10, the December 90s for $6.00. When AAPL trades near $110 buy them back for half. Note: you never want to sell puts on stocks you're not willing to own or can't afford to buy.

Suggested Options:
We are suggesting the December calls.

BUY CALL DEC 95.00 QAA-LS open interest=7100 current ask $9.65
BUY CALL DEC 100.0 QAA-LT open interest=5758 current ask $7.15
BUY CALL DEC 105.0 QAA-LA open interest=4816 current ask $5.20

Annotated Chart:
AAPL

Picked on November 13 at $ 96.44
Change since picked:      + 0.00
Earnings Date           01/22/09 (unconfirmed)
Average Daily Volume =        53 million  


Freeport McMoran - FCX - close: 26.01 change: +3.72 stop: 22.90

Why We Like It:
The market's bounce has helped FCX produce what appears to be a bullish double-bottom pattern. It's still early for this pattern but the stock is very volatile can as you can see from today shares could easily produce double-digit percentage gains. FCX is extremely oversold from its six-month sell-off. The stock could be trading above $30.00 in another session or two.

This should be considered a very aggressive, high-risk play as we try to call the bottom following today's bullish reversal (short-covering rally) in the market.

We're setting two targets. First target is $30.00. Our second target is $32.50.

Suggested Options:
We're suggesting the December calls.

BUY CALL DEC 25.00 FCX-LE open interest=3295 current ask $4.45
BUY CALL DEC 30.00 FCX-LF open interest=9176 current ask $2.40

Annotated Chart:
FCX

Picked on November 13 at $ 26.01
Change since picked:      + 0.00
Earnings Date           01/22/09 (unconfirmed)
Average Daily Volume =      23.7 million  


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