Editor's Note:

FYI: Aggressive traders might want to look at GDI as a put play but beware the option spreads, which are very wide!


Noble Corp. - NE - close: 40.18 change: +0.29

Stop Loss: 38.45
Target(s): 44.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
NE is an oil stock that's showing relative strength and outperformed many of its peers today. Shares managed to breakout past round-number resistance at $40.00. I am suggesting we open small bullish positions tomorrow morning but only if both NE and the S&P 500 open positive tomorrow. We'll use a stop loss under this week's low. Our multi-week target is $44.75. FYI: The Point & Figure chart for NE is bullish with a long-term $61 target.

Do not enter position unless NE and the S&P 500 are both positive at the open

- Suggested Positions -

buy the Apr $40 call (NE1221D40) current ask $1.88

Annotated Chart:

Entry on February xx at $ xx.xx
Earnings Date 04/19/12 (unconfirmed)
Average Daily Volume = 4.4 million
Listed on February 29, 2012