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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Paul Senior who wrote (47948)5/14/2012 7:54:01 PM
From: E_K_S  Read Replies (1) | Respond to of 78744
 
Hi Paul:
Denbury Resources, Inc. ( Holdi (NYSE: DNR) - target Buy price $15.00
Suncor Energy Inc. Common Stoc (NYSE: SU) - target Buy price $26.00
goo.gl

Denbury Resources, Inc. (DNR) is one on my list too. Also a bit more of SU below $27.00. I will nibble with small ads as these stocks come to my price target. I still think it is early but one never knows . My new rule is to ad these picks to my value basket when Oil drops into each new $5.00/barrel level. Today we broke through $95.00/barrel to close at $94.20/barrel.

I will probably be adding a few shares but I am tempted to wait until option expiration Friday to see if I can get a little better pricing. As we approach Friday, we generally see the extreme in pricing for that month's cycle. This is also know sometimes as the "Maximum Pain" pricing.

How can you use this information on Max Pain?
wiki.fool.com
If you are planning to buy a stock, you might want to check the Max Pain price for the next option expiration day. If the Max Pain price is below the current stock price, you may want to hold off buying until the option expiration day, or better still, put in a good 'til canceled (GTC) order -- a type of limit order -- to buy the stock at a small premium to the Max Pain price.
Friday May 18th is Option Expiration and Max Pain will be in-play. Also, $3.8B Euro Bond refunding is due which may cause some "pain" for Greece.

EKS



To: Paul Senior who wrote (47948)5/15/2012 9:22:44 AM
From: E_K_S  Read Replies (2) | Respond to of 78744
 
Hi Paul -

Ever looked at this company? Advantage Oil & Gas Ltd. (AAV)
advantageog.com

They have sold off substantially like many of the other E&P's. Located in Northwest Canada, they seem to have quite a bit exposure to some very nice oil reserves. I plan to start a small position to ad to my other E&P's.

EKS