NEW DIRECTIONAL CALL PLAYS
EOG Resources - EOG - close: 105.17 change: +1.53
Stop Loss: 102.90
Target(s): to be determined
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below
Why We Like It:
EOG is in the basic materials sector. The company explores, develops, produces, and markets crude oil and natural gas. The stock popped higher on May 6th following its earnings results the night before. The company beat analysts' estimates on both the top and bottom line. Revenues were significantly above expectations.
Energy stocks as a group have been outperforming the broader market. EOG is leading the way with shares near record highs. This leadership should continue as oil prices tend to rise in June-through-July before dipping in August.
Currently the stock is sitting just below resistance at $105.50. We are suggesting a trigger to buy calls at $106.00. More conservative traders may want to wait for a rise past the intraday high of $106.50 instead.
We are not setting an exit target yet but the
Point & Figure chart for EOG is bullish with a $125 target.
Trigger @ $106.00
- Suggested Positions -
Buy the Jul $110 call (EOG140719C110)* current ask $2.03
*I've provided the more standardized option symbol format.
Entry on May -- at $---.--
Average Daily Volume = 4.4 million
Listed on May 13, 2014