4 New Plays

Add PEG, CMC, APC, and INFY

Dear Bottarelli Research Member,

I have four exciting new plays that I’d like to share with you.

Three of the plays offer you cheap upside exposure to the three sectors that are experiencing strong upside momentum: Oil, Energy, and Metals. But unlike your standard oil, energy, and metals plays – the three candidates I have for you are seemingly unrecognized by the general inviting public – making these plays potentially more explosive for you and me. So let’s dive right in!

The first candidate is Public Service Enterprise Group (PEG – NYSE), and this one offered up the same technical reading that I used to make a quick 23.08% gainer on the Entergy June 110 Calls (ETR FB).

PEG engages in the distribution and sale of electric energy and natural gas to the Northeastern and Mid Atlantic United States – operating a portfolio of approximately 14,639 MW of installed capacity. You can see for yourself that the chart is an absolute thing of beauty – as any momentary down-turn is quickly bought up over the next few days. Similar to the ETR play, today’s new 52-week high on PEG offers no reason why PEG should not keep rising – so let’s get positioned to profit off the continued push to $100 per share.

PLAY: Buy the PEG June 90 Calls (PEG FR) at or under $3.50, good for the day. Current bid/ask spread is $3.20 to $3.40. Place a protective stop loss at $1.90.

Also hitting a new 52-week high is Commercial Metals (CMC – NYSE).

This company operates four steel mills in Texas, Alabama, South Carolina, and Arkansas that engage in the manufacture, recycle, marketing, and distribution of steel and metal products both in the United States and internationally. Since rising steel prices just drove up Nucor’s profit – helping the steel giant beat Wall Street estimates and raise second quarter expectations – it’s my view that this very strong steel environment will also trickle down to smaller names like CMC.This should continue to fuel the upside push that we’ve seen lately.

While most investors focus on US Steel and Nucor, CMC has quietly been in a major upside run and I want us all to take advantage of this great momentum – as there’s no reason why a push up to $40 should not happen in the near future.

PLAY: Buy the CMC June 35 Calls (CMC FG) at or under $2.00, good for the day. Current bid/ask spread is $1.80 to $1.90. Place a protective stop loss at $0.75.

Over in the oil patch sector, we find Anadarko Petroleum (APC – NYSE).

Anadarko Petroleum engages in the acquisition, exploration, and production of oil and gas in the United States and deepwater Mexico and Algeria. They also purchase natural gas, crude oil, and natural gas liquid volumes for resale – with operations ranging as far as The People’s Republic of China, Venezuela, and Qatar. With a forward P/E ratio of just 10.33, APC offers you an attractively-priced way to maintain upside exposure to the domestic and international oil and gas sector. I especially like the price of the APC June 50 Calls (APC FJ) which are currently trading for under $1.00. This to me is a steal – so let’s add this position now!

PLAY: Buy the APC June 50 calls (APC FJ) at or under $1.10 good for the day. Place a protective stop loss at $0.60.

On the downside, I’m containing to watch Infosys Technologies (INFY – NASDAQ), as the stock seems to capped off at the 50-day moving average. Selling at 41 times earnings and 10 times revenues, India’s second-largest information-technology (IT) consulting firm could easily get a haircut – pushing it down to more attractive levels. So let’s add some downside exposure in the form of INFY puts.

PLAY: Buy the INFY June 55 Puts (IUN RK) at or under $2.95, good for the day. Current bid/ask spread is $2.50 to $2.75. Place a protective stop loss at $1.70.

Lock and load!

Sincerely,