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Call Options Plays
Put Options Plays
JOE None
PGR  
WLP  

New Calls

St Joe Co - JOE - close: 75.05 chg: +2.20 stop: 72.49

Company Description:
The St. Joe Company, a publicly held company based in Jacksonville, is one of Florida's largest real estate operating companies. It is engaged in town, resort, commercial and industrial development, land sales and commercial real estate services. JOE also has significant interests in timber. (source: company website)

Why We Like It:
This play is for the momentum traders out there. Shares of JOE have been on fire for more than a year and they show no signs of stopping. A quick glance at the daily chart shows that investors have been buying dips near the rising 30-dma. Short-term technicals are bullish and JOE looks ready for the next leg higher once it clears the $75.00 level. We are going to use TRIGGER at $75.51 so JOE will have to clear the recent high before we go long. Our short-term target is $80.00.

Suggested Options:
We like the June calls.

BUY CALL JUN 70 JOE-FN OI= 459 current ask $7.60
BUY CALL JUN 75 JOE-FO OI=1185 current ask $4.50
BUY CALL JUN 80 JOE-FP OI= 521 current ask $2.35


 

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/04/05 (unconfirmed)
Average Daily Volume = 500 thousand

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Progressive - PGR - close: 88.76 change: +1.48 stop: 85.80

Company Description:
The Progressive group of insurance companies ranks third in the nation for auto insurance based on premiums written. The companies that offer insurance directly (by phone at 1-800-PROGRESSIVE and online at progressive.com) market their products and services through the Progressive Direct(SM) brand, while the companies that offer insurance through more than 30,000 independent agencies in the U.S. market their products and services through the Drive Insurance from Progressive(SM) brand. (source: company website)

Why We Like It:
Investors do not seem concerned over the ongoing investigation into a possible bid-rigging scheme that PGR has received subpoena's for. Like most of these investigations they probably assume it will eventually be settled. Looking at PGR's chart it appears that the stock has put in a significant bottom over the December-February consolidation. It's probably not a coincidence that the January low tested rising Point & Figure chart support. Now the P&F chart has produced a new buy signal with a $104 target. We want to use a TRIGGER above the recent highs near $89.20. Our entry point will be $89.51. More conservative traders can wait for a move over the $90.00 level. Our target is the $95.00 region.

Suggested Options:
We will suggest the May calls although Aprils are also available.

BUY CALL MAY 85 PGR-EQ OI=1393 current ask $5.90
BUY CALL MAY 90 PGR-ER OI=4331 current ask $2.80
BUY CALL MAY 95 PGR-ES OI=1663 current ask $1.05


 

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/21/05 (unconfirmed)
Average Daily Volume = 770 thousand

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Wellpoint - WLP - close: 126.88 chg: +2.91 stop: 119.99

Company Description:
WellPoint, Inc. is the largest publicly traded commercial health benefits company in terms of membership in the United States. WellPoint, Inc. is an independent licensee of the Blue Cross and Blue Shield Association and serves its members as the Blue Cross licensee for California; the Blue Cross and Blue Shield licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri (excluding 30 counties in the Kansas City area), Nevada, New Hampshire, Ohio, Virginia (excluding the Northern Virginia suburbs of Washington, D.C.), Wisconsin; and through HealthLink and UniCare. (source: company website)

Why We Like It:
Some of the health insurance stocks are really out performing the market and it looks like WLP is ready to join the charge higher. Shares of WLP added 2.3 percent on Friday to breakout over three-month old resistance near $125 to hit new all-time highs. The MACD has produced a new buy signal and its P&F chart has produced a new triple-top breakout buy signal. The median analyst price target is $135 and that sounds like a good target for us. Our time frame is the late April earnings report. Readers can choose to go long (buy calls) at current levels or look for a dip back toward $125.00. WLP is due to present at the Raymond James conference this Monday.

Suggested Options:
We are going to suggest the April calls. Be sure to double-check your option symbols. The root should be WLP not FLW.

BUY CALL APR 120 WLP-DD OI= 67 current ask $9.30
BUY CALL APR 125 WLP-DE OI=203 current ask $5.90
BUY CALL APR 130 WLP-DF OI= 48 current ask $3.40


 

Picked on March 06 at $126.88
Change since picked: + 0.00
Earnings Date 04/20/05 (unconfirmed)
Average Daily Volume = 2.1 million

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