NEW DIRECTIONAL CALL PLAYS
Cameron Intl. - CAM - close: 65.49 change: +1.33
Stop Loss: 64.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
CAM is in the oil and gas equipment business. The company reported earnings on January 31st. They missed estimates by a penny and management actually guided Q1 earnings lower. That should have sent the stock plunging. Yet instead shares of CAM surged. The company reported strong new orders and the backlog of business has ballooned to $8.5 billion.
CAM has spent the last two weeks digesting gains and consolidating sideways in the $64-66 zone. I am suggesting a trigger to buy calls at $66.25. If triggered our short-term target is $69.75. More aggressive traders could definitely aim higher.
Trigger @ 66.25
- Suggested Positions -
buy the MAR $65 call (CAM1316c65) current ask $2.20
Entry on February -- at $---.--
Average Daily Volume = 3.0 million
Listed on February 14, 2012