Friday, August 21, 2009

Bullish Options Trading in Jacobs Engineering (JEC)

Jacobs Engineering Group, Inc. (NYSE: JEC) October $50 calls are seeing some bullish action after lots of 1,000 and 1,500 are bought.  There have been some rumors in the past that JEC could be an acquisition target with ABB Ltd. as a potential buyer.  Shares are breaking out today with the broader markets and it looks like a great trend shift with a break of the 200 day EMA confirmed, a level shares have not been above since last August.  The polygon breakout would imply a move to around $70 over the next few months.  Shares are also wildly cheap compared to peers in the construction services industry at 13X earnings and 5.34X cash.

JOE KUNKLE, OptionsHawk.com


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