NEW DIRECTIONAL CALL PLAYS
Flowserve - FLS - close: 83.15 change: -3.49 stop: 72.45
Why We Like It:
We want to hop on the FLS bandwagon but shares are correcting. Nimble traders could try scalping a few points on the way down. This trade is to wait for a dip and buy calls. Our trigger to open bullish positions is at $76.00. We'll use a stop loss at $72.45. More conservative traders can use a stop closer to $74.00. If triggered at $76.00 our first target is $83.50. Our second target is $89.00. Our time frame is several weeks.
We want to use the September or October calls. Trigger at $76.00.
Remember, it is always up to the individual trader to decide which month and which strike price best suits your trading style and risk profile.
BUY CALL SEP 85.00 FLS-IQ open interest= 336 current ask $3.40
BUY CALL SEP 80.00 FLS-IP open interest= 460 current ask $6.10
BUY CALL SEP 75.00 FLS-IO open interest= 294 current ask $9.70
BUY CALL SEP 85.00 FLS-JQ open interest= 446 current ask $4.70
BUY CALL SEP 80.00 FLS-JP open interest= 438 current ask $7.40
BUY CALL SEP 75.00 FLS-JO open interest= 585 current ask $10.70
Picked on August xx at $ xx.xx <-- TRIGGER @ 76.00
Change since picked: + 0.00
Earnings Date 10/28/09 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on August 17, 2009