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LEH None

New Calls

Lehman Brothers - LEH - cls: 108.13 chg: +0.53 stop: 103.90

Company Description:
Lehman Brothers, an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high net worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private investment management, asset management and private equity. The Firm is headquartered in New York, with regional headquarters in London and Tokyo, and operates in a network of offices around the world. (source: company press release or website)

Why We Like It:
The third quarter is not normally the best time of year for the broker-dealers but this year Goldman Sachs believes will be better than usual. GS recently upgraded the brokers with positive expectations for the quarter. Stocks in this sector tend to have a pre-earnings run up anyway and the recent bullish breakout and relative strength in shares of LEH make this an attractive bullish candidate. Here's our plan. We want to buy a dip back into the $106.50-107.10 region. If LEH hits our trigger and opens the play we will target a move into the $112.00-112.50 range before its late September (20th?) earnings report. We'll start the play with a stop loss at $103.90 under support at its 50-dma near $104.00.

Suggested Options:
We are suggesting the October calls.

BUY CALL OCT 105.00 LES-JA OI=4980 current ask $5.50
BUY CALL OCT 110.00 LES-JB OI=6251 current ask $2.55

Picked on September xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 09/20/05 (unconfirmed)
Average Daily Volume = 1.9 million
 

New Puts

None today.
 

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