NEW DIRECTIONAL CALL PLAYS

Diamond Offshore - DO - close: 90.24 change: +2.00 stop: 86.15

Why We Like It:
The oil service stocks displayed some relative strength today. I suspect the group will continue to be strong. The dollar is sliding lower again and that should boost crude oil prices in spite of recent calls that demand is weak. I'm suggesting call options on DO now with a stop loss under this week's low. Our first target is $94.00, which is where we want to exit at least half it not all of our position. I'm setting a secondary target at $99.50. I am labeling this an aggressive trade because the market itself is still very overbought. You may want cut back on your position size.

Suggested Options:
I am suggesting the September calls. My time frame is less than two weeks.

BUY CALL SEP 90.00 DWG-IR open interest= 152 current ask $7.90
BUY CALL SEP 95.00 DWG-IS open interest= 256 current ask $4.70

Annotated Chart:

Picked on   August 13 at $ 90.24
Change since picked:      + 0.00
Earnings Date           10/22/09 (unconfirmed)
Average Daily Volume =       2.3 million  
Listed on August 13, 2009         


Mobile Telesys - MBT - close: 44.85 change: +1.35 stop: 41.90

Why We Like It:
This Russian cell phone provider looks ready to breakout over resistance. The high today was $45.28. I am suggesting readers buy calls at $45.35. Our first target is $49.50.

Suggested Options:
Use the September calls. My time frame is less than four weeks.

BUY CALL SEP 45.00 MBT-II open interest= 936 current ask $2.90
BUY CALL SEP 50.00 MBT-IJ open interest= 184 current ask $1.05

Annotated Chart:

Picked on   August xx at $ xx.xx <-- TRIGGER @ 45.35
Change since picked:      + 0.00
Earnings Date           08/12/09 (confirmed)
Average Daily Volume =      1.45 million  
Listed on August 13, 2009