NEW DIRECTIONAL CALL PLAYS
EOG Res. Inc. - EOG - close: 75.79 change: +2.23 stop: 70.80
Why We Like It:
The oil sector produced a very nice rebound off its Monday lows last week. I believe the trend is still up but we want to buy a dip. I'm suggesting we buy calls at $74.00 on EOG. Our first target is $79.50. Our second target is $88.00. The daily chart is building an inverse H&S pattern that is forecasting a rally toward $100.
Suggested Options:
I am suggesting the September or October calls.
BUY CALL SEP 75.00 EOG-IO open interest=2311 current ask $3.50 BUY CALL SEP 80.00 EOG-IP open interest=1351 current ask $1.35 BUY CALL OCT 75.00 EOG-JO open interest=2024 current ask $4.90 BUY CALL OCT 80.00 EOG-JP open interest=2626 current ask $2.65 BUY CALL OCT 85.00 EOG-JQ open interest=3033 current ask $1.25
Annotated Chart:
Picked on August xx at $ xx.xx <-- TRIGGER @ 74.00
Change since picked: + 0.00
Earnings Date 11/03/09 (unconfirmed)
Average Daily Volume = 2.4 million
Listed on August 22, 2009
Grainger W.W. - GWW - close: 89.82 change: +1.44 stop: 84.50
Why We Like It:
Traders bought the dip last week right where they were supposed to near support at $85.00 and its 50-dma. The trend is up and GWW looks poised to rally towards $95 and beyond. I'm suggesting readers buy calls on a dip at $88.00. Our first target is $93.50.
Suggested Options:
I am suggesting the September calls.
BUY CALL SEP 85.00 GWW-IQ open interest= 408 current ask $5.80 BUY CALL SEP 90.00 GWW-IR open interest= 855 current ask $2.40
Annotated Chart:
Picked on August xx at $ xx.xx <-- TRIGGER @ 88.00
Change since picked: + 0.00
Earnings Date 10/14/09 (unconfirmed)
Average Daily Volume = 635 thousand
Listed on August 22, 2009
Mettler Toledo - MTD - close: 87.52 change: +1.29 stop: 83.95
Why We Like It:
Shares of MTD are breaking out from a five-week consolidation. Considering the coiling (tightening trading range) over the last few weeks I suspect MTD can breakout past resistance near $90.00. The plan is to buy calls on a dip into the $86.50-85.00 zone. If triggered our first target is $93.50. Our second target is $99.00. I am labeling this an aggressive play because volume is pretty light for this stock.
Suggested Options:
We want to trade the September calls
BUY CALL SEP 90.00 MTD-IR open interest=142 current ask $2.00 BUY CALL SEP 95.00 MTD-IS open interest= 20 current ask .45
Annotated Chart:
Picked on August xx at $ xx.xx <-- TRIGGER @ 86.50
Change since picked: + 0.00
Earnings Date 11/05/09 (unconfirmed)
Average Daily Volume = 234 thousand
Listed on August 22, 2009