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ALV None None

New Calls

Autoliv - ALV - close: 57.53 change: +1.14 stop: 54.99

Company Description:
Autoliv Inc. develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures Autoliv has 80 facilities with nearly 39,000 employees in 30 vehicle-producing countries. In addition, the company has development and engineering centers in six countries around the world, including 20 test tracks, more than any other automotive safety supplier. Sales in 2005 amounted to US $6.2 billion. (source: company press release or website)

Why We Like It:
Honestly we are surprised by the strength in ALV. As an auto parts maker we would naturally think business is tough with the U.S. automakers struggling so much. However, ALV is a global company so maybe they're making up the difference with foreign automakers. To simplify matters "the trend is your friend" and ALV is bouncing from the bottom (support) of its rising channel (see chart). The MACD has just produced a new buy signal on its daily chart and the P&F chart is very bullish with a $94 target. We are going to suggest call positions now but traders can choose to either wait for a breakout over $58.00 or look for a dip back towards $56.00. Our short-term target is the $60.00 level but our mid-June target is the $62.50-63.00 range.

Suggested Options:
We are suggesting the June options. Double check these prices!

BUY CALL JUN 55.00 ALV-FK open interest=526 current ask $3.50
BUY CALL JUN 60.00 ALV-FL open interest= 23 current ask $1.55

Picked on May 04 at $ 57.53
Change since picked: + 0.00
Earnings Date 04/27/06 (confirmed)
Average Daily Volume = 513 thousand

New Puts

None today.

New Strangles

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