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BIIB None None
CME    

New Calls

Biogen Idec - BIIB - close: 45.52 change: +0.05 stop: 43.45

Company Description:
Biogen Idec creates new standards of care in oncology, neurology and immunology. As a global leader in the development, manufacturing, and commercialization of novel therapies, Biogen Idec transforms scientific discoveries into advances in human healthcare. (source: company press release or website)

Why We Like It:
The BTK biotech index is breaking out higher after Thursday's move through its four-week trendline of resistance. If the sector continues to show strength we suspect that BIIB will be able to breakout over significant resistance at the $46.00 mark. Short-term technicals are bullish and the P&F chart is very bullish with a $62 target. We are suggesting a trigger to buy calls at $46.11. If triggered we will target a rally into the $49.85-50.00 range. We do not want to hold over BIIB's late January earnings report.

Suggested Options:
We are suggesting the February calls.

BUY CALL FEB 45 IDK-BI open interest=455 current ask $2.55
BUY CALL FEB 50 IDK-BJ open interest=363 current ask $1.00

Picked on December xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/25/06 (unconfirmed)
Average Daily Volume = 3.2 million

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Chicago Merc. Exhg. - CME - cls: 379.75 chg: +3.54 stop: 372.49

Company Description:
Chicago Mercantile Exchange Inc. is the largest futures exchange in the United States. As an international marketplace, CME brings together buyers and sellers on CME Globex electronic trading platform and on its trading floors. CME offers futures and options on futures primarily in four product areas: interest rates, stock indexes, foreign exchange and commodities. The exchange moved about $1.4 billion per day in settlement payments in the first three quarters of 2005 and managed $43.8 billion in collateral deposits at September 30, 2005, including $3.8 billion in deposits for non-CME products. (source: company press release or website)

Why We Like It:
CME has rebounded strongly from its December lows. Technical indicators have turned positive again. If the stock can breakout over the $380 level it will produce a new triple-top breakout buy signal on its P&F chart. If that occurs we believe CME may be able to rally towards the $400 level. We are suggesting a trigger to buy calls at $380.55. We'll set a target in the $395.00-400.00 range. CME is a very volatile stock so this is an aggressive, speculative play. More conservative plays may want to just paper trade this one.

Suggested Options:
We are suggesting the January calls since this will probably only be a two or three week play.

BUY CALL JAN 370 CMJ-AE open interest=2061 current ask $17.80
BUY CALL JAN 380 CMJ-AG open interest= 881 current ask $11.70
BUY CALL JAN 390 CMJ-AI open interest=1341 current ask $ 7.60
BUY CALL JAN 400 CMJ-AK open interest=2946 current ask $ 4.40

Picked on December xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/02/06 (unconfirmed)
Average Daily Volume = 888 thousand
 

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New Strangles

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