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Call Options Plays
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Strangle Options Plays
None AMGN None
  BNI  
  BRL  
  WYNN  

New Calls

None today.
 

New Puts

Amgen Inc. - AMGN - close: 67.48 chg: -1.70 stop: 69.55

Company Description:
Amgen discovers, develops and delivers innovative human therapeutics. A biotechnology pioneer since 1980, Amgen was one of the first companies to realize the new science's promise by bringing safe and effective medicines from lab, to manufacturing plant, to patient. Amgen therapeutics have changed the practice of medicine, helping millions of people around the world in the fight against cancer, kidney disease, rheumatoid arthritis, and other serious illnesses. With a broad and deep pipeline of potential new medicines, Amgen remains committed to advancing science to dramatically improve people's lives. (source: company press release or website)

Why We Like It:
The BTK biotech index's three-week bounce has reversed course with a failed rally at its 50-dma and 200-dma. The sector was hit hard by profit taking today with a 3.5% decline in the BTK index. Shares of AMGN only lost 2.45% but shares of AMGN have produced a bearish "evening star" candlestick pattern. This candlestick pattern is a bearish reversal pattern and it occurred in AMGN just as the stock was testing resistance at its descending 50-dma. We are going to suggest puts with AMGN under $68.50 and our target will be the $62.65-62.25 range. More aggressive traders may want to aim lower since the P&F chart points to a $60 target. We do expect a bounce near the $65.00 level. We do not want to hold over the July earnings report.

Suggested Options:
We are suggesting the July puts.

BUY PUT JUL 70.00 YAA-SN open interest=8433 current ask $3.70
BUY PUT JUL 67.50 YAA-SU open interest=7601. current ask $2.30
BUY PUT JUL 65.00 YAA-SM open interest=14116 current ask $1.40

Picked on June 05 at $ 67.48
Change since picked: + 0.00
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 8.9 million

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Burlington Nrth.SntFe - BNI - cls: 75.64 chg: -2.93 stop: 80.01

Company Description:
A subsidiary of Burlington Northern Santa Fe Corporation, BNSF Railway operates one of the largest railroad networks in North America, with about 32,000 route miles in 28 states and two Canadian provinces. The railway is among the world's top transporters of intermodal traffic, moves more grain than any other American railroad, transports the components of many of the products we depend on daily, and hauls enough low-sulphur coal to generate about ten percent of the electricity produced in the United States. (source: company press release or website)

Why We Like It:
Our new bullish play in CSX is off to a terrible start thanks to a 3% sell-off in the transportation sector and another rise for crude oil. We're going to hedge our bets by adding a put play in BNI, another railroad. BNI is failing at resistance near $80.00 and the top of its descending channel. Technicals are bearish. We are going to suggest puts here with BNI under $78.00. More conservative traders may want to wait for a move under $75.00 before initiating positions. We're going to suggest two targets. Our first target will be the $70.50-70.00 range since BNI may have support at $70.00, bolstered by its simple 200-dma. The second target will be the $66.00-65.00 range, which is where the stock would appear to hit the bottom of its channel. Consider selling half or three quarters of your position near $70 and the remainder near $65. We do not want to hold over the July earnings report.

Suggested Options:
We are suggesting the July puts.

BUY PUT JUL 80.00 BNI-SP open interest= 5679 current ask $6.00
BUY PUT JUL 75.00 BNI-SO open interest= 2906 current ask $3.10
BUY PUT JUL 70.00 BNI-SN open interest= 4105 current ask $1.45

Picked on June 05 at $ 75.64
Change since picked: + 0.00
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 2.1 million

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Barr Pharma - BRL - close: 52.20 chg: -1.55 stop: 54.25

Company Description:
Barr Pharmaceuticals, Inc. is a holding company whose principal subsidiaries, Barr Laboratories, Inc. and Duramed Pharmaceuticals, Inc., develop, manufacture and market generic and proprietary pharmaceuticals. The Company is the leading marketer and manufacturer of oral contraceptive products in the United States, based on industry data. The Company currently markets 22 generic oral contraceptive products under its Barr Laboratories, Inc. label and six proprietary (branded) oral contraceptive under the Duramed Pharmaceuticals, Inc. label. (source: company press release or website)

Why We Like It:
The oversold bounce in BRL is failing. The stock bounced high enough to fill the gap down from mid May and now the rally is stalling. Shares have struggled to breakout over the $54.00 region for the last couple of weeks and now technicals are turning bearish. The stock already has a bearish pattern of lower highs. Today's 2.88% decline was partially fueled by negative analyst comments (lowered earnings estimates). We are suggesting puts with BRL under $53.50. Our target is the $48.00-47.50 range near the May lows.

Suggested Options:
We are suggesting the July puts.

BUY PUT JUL 55.00 BRL-SK open interest= 291 current ask $4.00
BUY PUT JUL 50.00 BRL-SJ open interest=1146 current ask $1.50

Picked on June 05 at $ 52.20
Change since picked: + 0.00
Earnings Date 08/03/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Wynn Resorts - WYNN - close: 69.11 chg: -2.01 stop: 73.51

Company Description:
The company owns and operates Wynn Las Vegas, a luxury hotel and destination casino resort located on the Las Vegas Strip which opened to the public on April 28, 2005. Wynn Las Vegas features 2,716 luxurious guest rooms and suites; an approximately 111,000 square foot casino; 22 food and beverage outlets; an on-site 18-hole golf course; approximately 223,000 square feet of meeting space; an on-site Ferrari and Maserati dealership; and approximately 76,000 square feet of retail space. Wynn Resorts, Limited is currently constructing Wynn Macau, a destination casino resort in the Macau Special Administrative Region of the People's Republic of China expected to open in the third quarter of 2006. (source: company press release or website)

Why We Like It:
The October 2005-April 2006 rally in WYNN has ended. Momentum began to stall in April and shares spent weeks consolidating under resistance at the $80.00 level. Now WYNN has broken down through multiple levels of support. More recently the stock has been consolidating sideways between $74.00 and $69.25. Today's 2.8% decline broke down below the bottom of this trading range and its rising 100-dma. The Point & Figure chart also looks pretty bearish with a descending triple-bottom breakdown sell signal and a $60 target. We are suggesting puts with WYNN under $70.00. We are going to suggest two targets. Consider selling half your position in the $65.25-65.00 range and then sell the rest of your position in the $61.00-60.00 range. The simple 200-dma near $60 could be support.

Suggested Options:
We are suggesting the July puts.

BUY PUT JUL 70.00 UWY-SN open interest= 136 current ask $4.40
BUY PUT JUL 65.00 UWY-SM open interest= 277 current ask $2.30

Picked on June 05 at $ 69.11
Change since picked: + 0.00
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume = 1.2 million
 

New Strangles

None today.
 

New Play Archives