Readers may want to keep an eye on Cabot Oil & Gas (COG) as a potential trade. I was tempted to add it tonight with a trigger to buy calls at $81.55 or $82.05. More conservative traders may want to wait for a new close over its 10-dma before considering positions. COG can be a volatile stock. If you trade it consider keeping positions small to limit your risk.
NEW DIRECTIONAL CALL PLAYS
JB Hunt Transport Services - JBHT - close: 43.92 change: +0.24
Stop Loss: 41.99
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below
Why We Like It:
JBHT is a transport stock that is ignoring the weakness in the transportation sector. While the $TRAN index is breaking down shares of JBHT are poised to breakout past resistance near $44.00.
I am suggesting a trigger to open bullish positions at $44.35. If triggered our multi-week target is $48.25. JBHT doesn't move super fast so give yourself time for the trade to work.
FYI: The Point & Figure chart for JBHT is bullish with a $63 target.
Trigger @ 44.35
- Suggested Positions -
buy the 2012JAN $45 call (JBHT1221A45) current ask $1.95
Entry on November xx at $ xx.xx
Earnings Date 01/30/12 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on November 22, 2011