Option Investor
New Plays

Consumer goods & Networking

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Play Editor's Note: I am reluctantly adding new bullish positions to the newsletter tonight. Selling rallies has been a successful move for months, why is this time any different? You could argue that we're still deeply oversold in spite of the best two-day rally in years. I suspect the bounce still has a few days left. I do believe this is just a bear-market bounce until the market proves me wrong but it still feels like being long is less risky than being short albeit both seem like high-risk propositions at this time. Our new plays should be considered aggressive and higher-risk.

FYI: Keep an eye on Scotts Miracle Gro (SMG). The stock is showing relative strength and looks poised to breakout over resistance near $30.00.


AptarGroup Inc. - ATR - close: 31.22 change: +1.20 stop: 29.45

Why We Like It:
ATR looks like it's showing some relative strength. When the S&P 500 was setting new lows last week ATR set a higher low. The market's rebound has allowed ATR to breakout from its multi-week trend of lower highs. It almost looks like a bull-flag breakout pattern. This looks like a good spot to consider new bullish positions with a tight stop under today's low. There does appear to be some resistance near $32.25 but if the rally continues I believe ATR can reach our target at $34.50.

Company info: AptarGroup, Inc. is a leading global supplier of a broad range of innovative dispensing systems for the personal care, fragrance/cosmetic, pharmaceutical, household and food/beverage markets. AptarGroup is headquartered in Crystal Lake, Illinois, with manufacturing facilities in North America, Europe, Asia and South America. For more information, visit the AptarGroup web site at www.aptargroup.com.

Annotated chart:

Picked on November 25 at $31.22 
Change since picked:     + 0.00   			
Earnings Date          02/05/09 (unconfirmed)    
Average Daily Volume:       559 thousand    

F5 Networks - FFIV - close: 24.12 change: +0.59 stop: 22.45

Why We Like It:
Networking stock FFIV is showing some relative strength. The stock built a double bottom above the $20.00 level last week when the S&P 500 was sinking to new multi-year lows. Yesterday saw a breakout over technical resistance and its trend of lower highs. Traders bought the dip at $22.58 this morning. The P&F chart is bullish and points to a $42 target. We do see some resistance near $26.00 and its 200-dma but given the trend I suspect that FFIV could rally to the $28.00 level if the market cooperates. We're suggesting a stop loss at $22.45. Our target is $27.50

Annotated chart:

Picked on November 25 at $24.12 
Change since picked:     + 0.00   			
Earnings Date          01/21/09 (unconfirmed)    
Average Daily Volume:       3.1 million     

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