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NEW DIRECTIONAL CALL PLAYS

Buffalo Wild - BWLD - close: 32.48 change: +2.34 stop: 29.89

Why We Like It:
Traders have to be careful picking stocks after such a big move in the market. One could argue that most of the move today was short covering and that doesn't create a very solid foundation for a lasting bull run. What I like about BWLD is that the stock had been showing relative strength. While the S&P 500 was sinking to new 12-year lows BWLD was consolidating sideways after a strong second half to February. Today's rally in BWLD is a bullish breakout from its consolidation pattern.

Aggressive traders will want to consider new call positions right here. I prefer to not chase 7% rallies. Instead I'm suggesting readers buy calls on a dip in the $31.50-30.50 zone. If triggered we have two targets. Our first target is $34.75. Our second target is $37.40. My time frame is less than two weeks on the first target and less than four weeks for the second target.

Suggested Options:
I am suggesting the April calls if BWLD hits our trigger at $31.50. It is up to the individual trader to decide which month and which strike price best suits your trading style and risk profile.

BUY CALL APR 30.00 BQU-DR open interest= 152 current ask $4.40
BUY CALL APR 35.00 BQU-DG open interest= 193 current ask $1.75

Annotated Chart:
BWLD

Picked on    March xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           04/29/09 (unconfirmed)
Average Daily Volume =       749 thousand 


Hess Corp. - HES - close: 58.37 change: +4.41 stop: 53.75

Why We Like It:
HES delivered an impressive 8% rally on Tuesday as the culmination of a three-week consolidation pattern under resistance around $56.00. Aggressive traders might want to consider bullish positions now. By not buying calls now we risk HES running higher without us. However, entry point is critical and I don't want to chase an 8% move. Yes, the breakout today is bullish but let's wait for a little profit taking to move in.

I'm suggesting readers buy calls on a dip into the $56.50-55.00 zone. If triggered we'll use a stop loss at $53.75. Our first target is $59.90. Our second target is $62.75. My time frame is less than two weeks for the first target. Less than four weeks for the second target.

The weekly oil inventory report is due out Wednesday morning and it could have an impact on how oil stocks trade.

Suggested Options:
I'm suggesting the April calls. Our trigger is 56.50.

BUY CALL APR 55.00 IGG-DK open interest= 455 current ask $7.20
BUY CALL APR 60.00 IGG-DL open interest= 890 current ask $4.50

Annotated Chart:
HES

Picked on    March xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           04/29/09 (unconfirmed)
Average Daily Volume =       5.0 million  


Research In Motion - RIMM - close: 38.96 chg: +3.71 stop: 36.45

Why We Like It:
RIMM is incredibly oversold from its early February peak. The sell-off stalled near support around $35.00 and yesterday's market weakness actually sent RIMM to test that level. Today is nothing more than a big oversold bounce fueled by short covering. However, what if the short covering continues? The NASDAQ really out performed the rest of the market today. Bear market rallies are fast and sharp just like today's. I suspect stocks will see some profit taking but the bounce might continue.

This is a very aggressive, high risk play but I'm suggesting readers buy calls on a dip at $37.55. We'll use a stop loss at $36.45. If triggered our first target is $42.40. Our second target is $44.75. My time frame is less than three weeks for the 2nd target.

Suggested Options:
I'm suggesting the April calls. Our trigger is $37.55.

BUY CALL APR 35.00 RUP-DG open interest= 8224 current ask $6.30
BUY CALL APR 40.00 RUP-DH open interest=13598 current ask $3.55

Annotated Chart:
RIMM

Picked on    March xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           04/02/09 (unconfirmed)
Average Daily Volume =        25 million  


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