NEW DIRECTIONAL CALL PLAYS

Martin Marietta - MLM - close: 94.10 change: +2.70 stop: 91.19

Why We Like It:
MLM looks poised to breakout higher after a two-week consolidation. Shares just bounced from their rising 50-dma but failed to push past the $95.00 level. I'm suggesting a trigger to buy calls at $95.15. We'll use a stop under today's low. Our first target to take profits is at $99.90. More aggressive traders could aim for the September highs.

Suggested Options:
I'm suggesting the November calls. My preference is the $100 strike. We want to exit ahead of the early November earnings report.

BUY CALL NOV 100 MLM-KT open interest= 226 current ask $2.20

Annotated Chart:

Picked on   October xx at $ xx.xx <-- TRIGGER @ 95.15
Change since picked:       + 0.00
Earnings Date            11/06/09 (unconfirmed)
Average Daily Volume =        418 thousand 
Listed on   October 15, 2009         


Transocean Ltd. - RIG - close: 91.48 change: +1.19 stop: 86.85

Why We Like It:
Oil service stocks have been showing a lot of relative strength thanks to a rally in oil. I expect oil service will continue higher and the bounce in RIG looks like an entry point. Our target is $99.50.

Suggested Options:
I'm suggesting the November calls but we'll plan to exit ahead of the early November earnings report. My preference is the $95 strike.

BUY CALL NOV 95.00 RIG-KS open interest=10093 current ask $2.70

Annotated Chart:

Picked on   October 15 at $ 91.48
Change since picked:       + 0.00
Earnings Date            11/04/09 (confirmed)
Average Daily Volume =        4.1 million  
Listed on   October 15, 2009