- New Trades -

Apache Corp. - APA - close: 87.80

Company Info

Why We Like It:
Oil and energy stocks have gotten crushed over the last few months. Yet it looks like APA has finally found a bottom. The stock declined toward support near $80 back in May. There was a brief dip to $78.00 in early June but this breakdown proved to be a bear-trap pattern. Now shares are breaking out past resistance near $85.00.

The recent strength is being fueled by new headlines about APA's latest find up in Canada. The company announced that it may have found one of the world's largest shale-gas fields ever! This reservoir could contain up to 48 trillion (with a T) cubic feet of recoverable natural gas.

I am suggesting we go ahead and buy calls on APA immediately. More nimble traders might want to consider waiting for a dip to what should be short-term support near $85.00. We'll start with a stop loss at $79.75. Our long-term target is $109.

- Suggested Positions -
Jun 18, 2012 - entry price on APA @ --.--, option @ -.--
symbol: APA1319A100 2013 JAN $100 call - current bid/ask $ 3.65/ 3.85

- or -

Jun 18, 2012 - entry price on APA @ --.--, option @ -.--
symbol: APA1418A100 2014 JAN $110 call - current bid/ask $ 6.35/ 6.70

Chart of APA:

Weekly Chart of APA:

Current Target: $109.00
Current Stop loss: 79.75
Play Entered on: 06/18/12
Originally listed in the New Plays 06/16/12