Every week, I scan thousands of potential option plays with a proprietary, scientific approach that removes the guesswork and allows my powerful software to identify the best buys.
McDermott International (MDR) is an engineering, procurement, construction and installation (EPCI) company that plans and executes all of the operations that go along with offshore oil and gas projects. My Power Options scanner shows that MDR stock is among the weakest I follow, but the crowd appears not to have caught on yet as its put options are very attractively underpriced.
Recommendation: Buy MDR August 8 put options at 50 cents or lower. After entry, take profits if the stock price hits $7.60 or the option price rises to 90 cents. Exit if the stock price closes above $9.00 or the option price falls to 40 cents.
If a profit target is hit intra-day, exit and take profits immediately. If the position closes at or below the stock-based or options-based stop loss, exit the trade the next morning at the open.
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