Two New Plays
Add HES Calls, FLR Puts
PLAY: Buy the FLR February 40 Puts (FLR NH) at or under $3.70, good for the day. Place a protective stop limit at $1.30 and a pre-determined sniper sell at $5.50.
PLAY: Buy the HES February 60 Calls (IGG BL) at or under $2.80, good for the day. Place a protective stop limit at $1.20 and a pre-determined sniper sell at $4.50.
Dear Bottarelli Research Member,
The Dow is desperately trying to hang onto the 8,000 level. And judging from the action this morning (which saw a +140-point gain get trimmed down to +5), it looks like it’ll be a difficult task. A break below 8,000 would almost certainly lead to a re-test of the 7,500 level. But similar to the last 7,500 test, this could also prove to be an attractive entry point that pushes the Blue Chips back up to 9,000. In other words, it’s very realistic to expect a trading range of 1,500 points over the next month — and that’s why I’ll continue to hold a series of calls and puts.
For today, I have isolated two new opportunities that I’d like to explore. The first comes in the form of engineering giant Fluor Corporation (FLR — NYSE).
Many feel that the global construction and project management firm will be a big winner with the upcoming Obama infrastructure initiatives. And that certainly might be the case down the road. But for today, the reality of the situation is that any upside effect won’t be felt until April or May (at the earliest). In the meantime, engineering projects have completely dried up. One engineer that I know feels that major layoffs will be announced soon. Combine this with the fact that FLR has now dipped underneath its 50-day moving average, and it looks like a bearish play to me. Therefore, let’s add FLR February puts now.
PLAY: Buy the FLR February 40 Puts (FLR NH) at or under $3.70, good for the day. Place a protective stop limit at $1.30 and a pre-determined sniper sell at $5.50.
Also on the radar today is Hess Corp. (HESS – NYSE). As you can see below, the global crude oil and natural gas explorer/producer is looking to test support levels right at the 50-day moving average. This test, combined with the idea that oil prices have set a near-term bottom, could be two powerful triggers that push shares of HES higher. Therefore, let’s go ahead and add some HES calls to our ledger as well. Here’s the play:
PLAY: Buy the HES February 60 Calls (IGG BL) at or under $2.80, good for the day. Place a protective stop limit at $1.20 and a pre-determined sniper sell at $4.50.
At the same time, I’d like to maintain all of our other positions. Continuing financial fears means that gold will push higher, which bodes well for our AEM February 55 Calls (AEM BK). Also, our MHK February 35 Puts (MHK NV) and our RTH February 70 Puts (RTH NN) are both trading right at our entry price, so any further downside action could quickly push both positions into the black.
Over on the call side, I’m still clinging to the idea that a sharp market up-move could ignite a blast-off in shares of MOS and LVS, so as a more speculative play, maintain your MOS February 35 Calls (MOS BG) and your LVS February 7.5 Calls (LJJ BU) as well.
And as always…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
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Two Plays to Kick off 2009
A Speculative Play
One Final Play
Afternoon Update
Take AZO Profits
Add V Puts
Take Visa Profits!
Add to LVS & JASO
Add VAR Puts
Morning Update
Add BG Puts
Opportunities Abound
VAR’s Surprise
Take KSS Profits
Make A Move on MON & ABX
Take BG Profits!
Add MTB Puts
Take MTB Profits
Add RTH Puts
A Speculative Play
Take ESI Profits!
Take ABX and MON Profits
Add MOS Calls
Take MOS Profits!
Take ABX Profits!
Add AEM Calls
Add MHK Puts Now
Two New Plays
Position Update
Ready to Strike
Take AEM Profits
Take HES Profits
Take MOS Profits!
Mid-Day Update
Add CLF Calls
Add OIH Calls
One Good, One Bad
Move on ABX
Add TBT Calls
Take ABX Profits!
A Pending Breakdown?
Add AEM Calls
