NEW DIRECTIONAL CALL PLAYS
Whiting Petroleum Corp - WLL - close: 71.43 change: -2.50
Stop Loss: 64.40
Target(s): 69.75, 74.00
Current Option Gain/Loss: Unopened
Time Frame: 2 to 3 weeks maybe
New Positions: Yes, see trigger
Why We Like It:
Oil and oil stocks could be poised for a correction. We want to be ready to buy the dip near support. WLL has spent the last week struggling with resistance near $75.00. When it pulls back I'm looking for a dip toward the $65.00 area.
I am suggesting a buy-the-dip entry point at $66.50 with a stop loss at $64.40. More conservative traders could wait for a dip closer to the $65.00 mark. Aggressive traders might want to consider buying puts with a stop above $75.00 and a target near the 50-dma. Then switching to calls.
If triggered our targets are $69.75 and $74.00. We do not want to hold over the late April earnings report but so far the date is unconfirmed.
Trigger @ $66.50
- Suggested Positions -
Buy the May $70 call (WLL1121E70) current ask $4.30
Entry on April xxth at $ xx.xx
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume = 1.6 million
Listed on April 11th, 2011