Add OIH Calls

Playing an Oil Lull

By Bryan Bottarelli
Wednesday, August 12, 2009 12:38 PM EDT
Wed, 12 Aug 2009 16:38:00 GMT

PLAY: Buy the OIH September 105 Calls (OIH IA) at or under $4.45, good for the day. Place a protective stop limit at $2.10 and a sniper sell at $7.00.

Dear Bottarelli Research Member,

Ever since peaking on August 1st, it seems like oil prices have remained in the background. When it comes to the Oil Service Holders (OIH – NYSE), this has caused this group of oil drillers to drift from $110.00 down to support right at $100.00. Now, as you can see below, this powerful collection of companies is currently bouncing right off their 50-day moving average. This should act as the catalyst to reignite a move back over $110.00, especially as we enter into the official start of hurricane season. Based on this move, let’s establish a September call position in the OIH.

OIH

PLAY: Buy the OIH September 105 Calls (OIH IA) at or under $4.45, good for the day. Place a protective stop limit at $2.10 and a sniper sell at $7.00.

TRADING NOTE: Due to my speaking engagement at Taipan’s annual Wealth Conference, I will be out of the office on Thursday and Friday. Therefore, there will be no trading alerts on these days. In many respects, this is why I chose to play September options on the OIH. This extended time-frame gives more time for this position to come our way. In terms of NTES and KSS, I’ll offer you preset buy and sell instructions on how to manage these two positions later in the trading session. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

© 2012 CSR Group, LLC. All rights reserved. Published in USA.

Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.

CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.

Bottarelli Research alerts contain time-sensitive information, and are published and distributed to members with urgency. Because of this, not all published materials can be adequately proofread, and an occasional spelling or grammar error may exist.


Other Options Alerts From August 2009