In addition to tonight's new play I suggest traders looking for a new bullish candidate check out shares of ZMH. The stock looks like it's ready to break higher with short-term support near its rising 40-dma. The next level of resistance appears to be $60.
NEW DIRECTIONAL CALL PLAYS
Chevron Corp. - CVX - close: 78.34 change: +0.68 stop: 76.75
Why We Like It:
Both CVX and the price of oil are showing similar charts with a four-week sideways consolidation. Shares of CVX look poised to breakout from this trading range. I'm suggesting readers use a trigger at $78.75 to buy calls. Our first target is $84.00. More conservative traders may want to wait for oil to close above its October highs (watch the USO) before launching bullish positions in the oil sector.
I am suggesting the December calls. My preference is the $80 strike.
BUY CALL DEC 80.00 CVX-LP open interest=17530 current ask $1.26
Picked on November xx at $ xx.xx <-- TRIGGER @ 78.75
Change since picked: + 0.00
Earnings Date 01/28/10 (unconfirmed)
Average Daily Volume = 10.6 million
Listed on November 10, 2009