NEW DIRECTIONAL CALL PLAYS
Hess Corp. - HES - close: 45.46 change: +1.53
Stop Loss: 44.45
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below
Why We Like It:
HES is an integrated oil and gas company with both an exploration and production arm and a marketing and refining business. The company reported earnings this morning. Wall Street was expecting a profit of $1.41 a share on revenues of $8.82 billion. HES beat both estimates with a profit of $1.61 on revenues of $9.3 billion for the second quarter.
The stock was a little volatile today but traders bought the midday dip and HES looks poised to move higher. Today's advance has created a brand new point and figure chart buy signal that is forecasting a $55 target.
Today's high was $46.42. I am suggesting a trigger to buy calls at $46.55. Our initial target is $49.85 since the $50.00 level could be round-number resistance. More aggressive traders could aim higher.
Trigger @ 46.55
- Suggested Positions -
buy the AUG $47.50 call (HES1218H47.5) current ask $0.77
- or -
buy the SEP $47.50 call (HES1222I47.5) current ask $1.58
Entry on July xx at $ xx.xx
Earnings Date 07/25/12
Average Daily Volume = 4.3 million
Listed on July 25, 2012