FYI: There are a lot of commodity and material-related names showing strength today. Check out steel, oil, and coal names as potential candidates.
NEW DIRECTIONAL CALL PLAYS
Canadian Nat. Res. - CNQ - close: 65.04 change: +1.87 stop: 61.90
Why We Like It:
Resource stocks like oil and coal companies were showing a lot of strength today. CNQ is an oil stock that is bouncing from short-term support near $62.00 and its 50-dma. If this bounce has any legs this is a great spot to open bullish positions.
I would be cautious and only use small positions to limit risk. We'll also use a tight stop under Friday's low. More conservative traders may want to wait for a move over $66.00 or the 10-dma before initiating call positions. Our first target is $71.50.
I am suggesting the November calls. My preference is the $65s and 70s.
BUY CALL NOV 70.00 CNQ-KN open interest= 887 current ask $2.55
Picked on October 05 at $ 65.04
Change since picked: + 0.00
Earnings Date 11/05/09 (confirmed)
Average Daily Volume = 6.4 million
Listed on October 05, 2009