Ansys, Inc. - ANSS - close: 48.98 change: -0.11

Stop Loss: 44.90
Target(s): 49.50,
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see trigger

Company Description:
ANSYS, Inc., founded in 1970, develops and globally markets engineering simulation software and technologies widely used by engineers, designers, researchers and students across a broad spectrum of industries and academia. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for fast, efficient and cost-conscious product development, from design concept to final-stage testing and validation. The Company and its global network of channel partners provide sales, support and training for customers. Headquartered in Canonsburg, Pennsylvania, U.S.A., with more than 60 strategic sales locations throughout the world, ANSYS, Inc. and its subsidiaries employ over 1,600 people and distribute ANSYS products through a network of channel partners in over 40 countries (source: company press release or website)

Why We Like It:
ANSS has been showing huge relative strength with a breakout past significant resistance last week. The stock is now testing overhead resistance in the $49-50 zone. Odds favor a pull back before ANSS gets much higher. Broken resistance near $46.50 should be support. I am suggesting we buy calls on a dip to $46.75. I'm listing a stop loss at $44.90 but you could probably get away with a stop closer to $46.00.

Buy-the-dip trigger @ 46.75

Suggested Position: Buy the 2011 January $50.00 calls (ANSS1018L50)

Annotated Chart:

Entry on November xxth at $ xx.xx
Earnings Date 02/24/11 (unconfirmed)
Average Daily Volume = 651 thousand
Listed on November 13th, 2010


Oceaneering Intl. Inc. - OII - close: 68.93 change: -2.55

Stop Loss: 72.15
Target(s): 64.50, 62.25
Current Option Gain/Loss: +0.00%
Time Frame: 3 to 4 weeks
New Positions: Yes

Company Description:
Oceaneering is a global oilfield provider of engineered services and products primarily to the offshore oil and gas industry, with a focus on deepwater applications. Through the use of its applied technology expertise, Oceaneering also serves the defense and aerospace industries. (source: company press release or website)

Why We Like It:
Let me start by saying I'm actually bullish on oil service stocks. Unfortunately OII seems to have gone too far too fast. Plus, the OSX oil services index has rallied right to resistance and begun to stall. OII look poised to correct and we want to try and capture some of the pull back. Maybe then we can switch directions and buy calls.

On a short-term basis OII has actually formed a little double top pattern. Plus the weekly chart has a blow-off top pattern. I'm suggesting bearish put positions now. You may want to keep your positions small since this is an aggressive, higher risk trade. Our first target is $64.50. Our second target is $62.25.

Suggested Position: Buy the December $65.00 puts (OII1018x65) current ask $1.65

Annotated Chart:

Entry on November 15th at $ xx.xx
Earnings Date 02/17/11
Average Daily Volume = 1.0 million
Listed on November 13th, 2010