NEW DIRECTIONAL CALL PLAYS

Noble Corp. - NE - close: 46.12 change: +0.65

Stop Loss: 43.95
Target(s): 49.75, 53.50
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The energy sector is slowly pushing past its early March highs. This could pave the way for another leg higher. I like NE because the stock doesn't have an outrageous P/E ratio and shares are pushing past major resistance in the $45-46 zone. I am suggesting bullish positions now with a stop at $43.95. More conservative traders might want to wait for NE to trade past the March 22nd high of $46.72 before initiating positions.

Our targets are $49.75 and $53.50. I would expect the $50.00 level to offer some resistance and it could take NE a little while to break through it. We will plan to exit ahead of the April 20th (unconfirmed) earnings report.

Open Bullish Positions Now

- Suggested Positions -

Buy the May $46.00 calls (NE1121E46) current ask $2.27

- or -

Buy the May $48.00 calls (NE1121E48) current ask $1.37

Annotated Chart:

Entry on March 31st at $ xx.xx
Earnings Date 04/20/11 (unconfirmed)
Average Daily Volume = 4.5 million
Listed on March 30th, 2011