-
Our OptionsZone experts have put together a list of rocket-fueled options trades designed to light up your portfolio.
Each trade was selected because it has the potential to double your money by the end of the summer. It doesn’t get any better
than that!There’s no need to get bogged down with the big, long-term picture for this erratic market when you can focus on netting some
cool near-term profits during the summer heat wave.Keep reading for the chance to score six money-doublers before fall rolls around.
-
United States Steel (X)
By John Lansing
The steel and iron industry is a strong sector with a lot of bullish potential during this summer. So take a look at United
States Steel (X).Now, X does have to overcome resistance near the $42 level, but I fully expect it can do that sooner rather than later. Think
of resistance levels as brick walls.
Every time a stock hits the resistance, it takes another chunk out of the wall, so that it’s left weakened. All X needs is one
good hit to punch its way through.The best trades in X are the $40 strike calls, whether you choose to play that more conservatively with the September calls,
or take on more risk with the August options. My short-term target for X is $50.
-
Apple (AAPL)
By Chris Johnson and Jon Lewis
All is right with the world. Steve Jobs is back in the captain’s chair at Apple (AAPL) after
a liver transplant, and the new iPhone 3GS is selling well (around a million units right out of the gate).AAPL has withstood challenges from Palm (PALM) and Research In Motion
(RIMM), along with Mr. Jobs’ absence, to soar more than 60% off its
March bottom. With AAPL’s products as popular as ever, look for the momentum to continue into the summer.Buy the AAPL Aug 135 Calls (APVHG).
Apple is one of the Top 10 Summer Stocks.
-
Microsoft (MSFT)
By Chris Johnson and Jon Lewis
Microsoft (MSFT) appears to be hitting the right buttons with Bing,
its new search engine, which is impressing critics. But that’s just one of a number of new products the company is slated to roll
out. Windows 7 is getting good press (goodbye, Vista!), and Xbox 360 continues to produce for the bottom line. With the product
pipeline full of promising offerings, the stock has a powerful wind at its back.Buy the MSFT Aug 23 Calls (MSQHQ).
Microsoft is one of 6 Tech Stocks to Own for the Rest of 2009.
-
Nucor Corp. (NUE)
By John Lansing
Nucor Corp. (NUE), the second-largest U.S. steelmaker, appears to be
in an ascending triangle pattern, which is a short-term
bullish pattern that takes approximately three months to play out. An ascending triangle is characterized by a flat top and a
rising bottom trendline. However, NUE’s ascending triangle has more of a corrective nature. It recently almost hit its bottom
trendline, which means a bounce back typically follows. It has to hurdle its resistance just below the $50 mark, but I believe
it will do that and climb right up to the $55 level.The best way to take advantage of this impending move is to buy the NUE August or September $55 strike calls. They both appear
to be really great plays, especially at these levels.Learn how to close out option trades for triple-digit
profits.
-
Cliffs Natural Resources (CLF)
By John Lansing
Iron and coal mining company Cliffs Natural Resources (CLF) is ready
for a breakout. It is in a very similar pattern to Nucor Corp. (NUE),
but, again, it’s not a classic ascending triangle because CLF’s historical pricing involved more of a consolidation after previously
hitting resistance around the $31 level. After CLF makes it past that, I’m looking for the stock to take a small pause between
$32 and $33, and then zoom up close to the $40 level.The best way to play this potential move is with the CLF August and September $30 strike calls.
-
Cisco Systems (CSCO)
By Chris Johnson and Jon Lewis
Everyone knows Cisco Systems (CSCO) as the giant in the networking
arena. With the technology sector poised to retain its
relative strength leadership through 2009, we like some of the larger companies in the group to continue outperforming the
market.For now, CSCO is one that remains off many analysts’ radar screens, as just more than half those covering the stock have it ranked
a buy. We typically like these "underappreciated" stocks, as they show room for upgrades and, thus, higher prices.The CSCO Aug 18 Calls (CYQHU) appear positioned to provide a potential "doubler" as
the stock moves back to its highs this summer.For more trading ideas, see:
