FYI: I had written a bullish play for NEU but the option spreads are so wide I decided to erase it. More aggressive traders may want to check it out. I would set my first target at $74.00 and my second target at $79.00.
NEW DIRECTIONAL CALL PLAYS
AutoZone Inc. - AZO - close: 158.77 change: +2.88 stop: 151.49
Why We Like It:
After two months of sliding lower AZO is now breaking out over multiple levels of resistance. I would prefer to buy calls on a dip back to the $157-156 zone but I'm suggesting bullish positions right now. This bullish breakout should portend a rally back toward the $170 level. I see short-term support near $152.00 so we'll set the stop at $151.49. Our target is $169.00.
I'm suggesting the August calls.
BUY CALL AUG 160 AZO-HL open interest=1791 current ask $5.10
BUY CALL AUG 165 AZO-HM open interest= 627 current ask $3.00
BUY CALL AUG 170 AZO-HY open interest=1084 current ask $1.60
Picked on July 14 at $158.77
Change since picked: + 0.00
Earnings Date 09/22/09 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on July 14, 2009