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New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
ATI None None
BNI    
GS    
UNP    
WYNN    

New Calls

Allegheny Tech. - ATI - cls: 70.01 chg: +4.11 stop: 64.95

Company Description:
Allegheny Technologies Incorporated is one of the largest and most diversified specialty metals producers in the world with revenues of $3.7 billion during the most recent four quarters ending March 31, 2006. ATI has approximately 9,300 full-time employees world-wide who use innovative technologies to offer growing global markets a wide range of specialty metals solutions. (source: company press release or website)

Why We Like It:
All of the steel-related stocks we looked at today did very well. We like ATI as a call option candidate due to the bullish breakout. Granted bullish breakouts were a dime a dozen with today's market rally but ATI pushed through significant resistance near $68.00, its 50-dma and the $70.00 level. This was in addition to trading past the gap down from mid May. We are suggesting calls with ATI above $68.00. You, the reader, can choose to open positions here or wait for a potential pull back. Considering the size of the rally today, and in ATI, it would be natural to expect some profit taking tomorrow but the shorts are probably scared and tomorrow is the last day for end of quarter window dressing so the rally could continue. Our target is the $75.00-76.00 range. The P&F chart currently points to an $83 target. We do not want to hold over the July earnings date.

Suggested Options:
We are suggesting the August calls.

BUY CALL AUG 65.00 ATI-HM open interest=301 current ask $ 9.20
BUY CALL AUG 70.00 ATI-HN open interest=996 current ask $ 6.30
BUY CALL AUG 75.00 ATI-HO open interest=371 current ask $ 4.20

Picked on June 29 at $ 70.01
Change since picked: + 0.00
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 3.8 million

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Burlington N.Santa Fe - BNI - cls: 79.09 chg: +1.78 stop: 74.90

Company Description:
A subsidiary of Burlington Northern Santa Fe Corporation, BNSF Railway Company operates one of the largest railroad networks in North America, with about 32,000 route miles in 28 states and two Canadian provinces. BNSF 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:
The transport stocks were a big part of today's rally. The Dow Jones Transportation average added 3.3% to break through resistance at the 4800 level. Shares of BNI did their part with a breakout from its two-week trading range and its 50-dma. We are suggesting calls here with BNI above $79.00. More conservative traders might want to wait for a move past the $80.00 mark since that level might be psychological resistance. Our target is going to be the $84.90-85.00 range although more aggressive traders might want to aim for the April highs near $87.50. The P&F chart currently points to a $93 target. We do not want to hold over the July earnings report.

Suggested Options:
We are suggesting the August calls.

BUY CALL AUG 75.00 BNI-HO open interest= 130 current ask $7.30
BUY CALL AUG 80.00 BNI-HP open interest=4095 current ask $4.10
BUY CALL AUG 85.00 BNI-HQ open interest= 186 current ask $1.95

Picked on June 29 at $ 79.09
Change since picked: + 0.00
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 2.3 million

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Goldman Sachs - GS - close: 152.20 chg: +5.71 stop: 146.45

Company Description:
Goldman Sachs is a leading global investment banking, securities and investment management firm. (source: company press release or website)

Why We Like It:
We seriously considered adding GS to the play list as a call candidate right here. Today's 3.8% gain is a bullish breakout through the top of its six-day trading range and resistance near $150 and its 100-dma. However, the stock still has technical resistance directly overhead at its 50-dma. Therefore we're going to suggest a trigger to buy calls at $153.05. Aggressive traders may want to jump in early. We're suggesting two targets. Our conservative target is the $157.50 level. Our aggressive target is going to be the $164.00 level. If shares of GS can trade over $154 it will produce a new buy signal on the P&F chart.

Suggested Options:
We're suggesting the August calls.

BUY CALL AUG 150.00 GPY-HJ open interest=1753 current ask $6.80
BUY CALL AUG 155.00 GPY-HK open interest=1435 current ask $4.00
BUY CALL AUG 160.00 GPY-HL open interest=3081 current ask $2.10

Picked on June xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 09/12/06 (unconfirmed)
Average Daily Volume = 5.0 million

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Union Pacific - UNP - close: 91.54 chg: +2.09 stop: 87.45

Company Description:
Union Pacific Corporation owns one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, links 23 states in the western two-thirds of the country and serves the fastest-growing U.S. population centers. Union Pacific's diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad offers competitive long-haul routes from all major West Coast and Gulf Coast ports to eastern gateways. Union Pacific connects with Canada's rail systems and is the only railroad serving all six major gateways to Mexico, making it North America's premier rail franchise. (source: company press release or website)

Why We Like It:
UNP is another railroad stock that enjoyed a strong session today. Shares added 2.3% and broke out from a two-week trading range. Volume was strong as UNP cleared resistance at the 100-dma. We are suggesting calls here with UNP above the $90.00 level. More conservative traders may want to wait for UNP to clear the 50-dma directly overhead. Our target is the $96.00-97.00 range. The P&F chart is bullish with a bounce from support and a $104 target. We do not want to hold over the July earnings report.

Suggested Options:
We are suggesting the August calls.

BUY CALL AUG 90.00 UNP-HR open interest= 713 current ask $4.70
BUY CALL AUG 95.00 UNP-HS open interest=1719 current ask $2.25

Picked on June 29 at $ 91.54
Change since picked: + 0.00
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 1.6 million

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Wynn Resorts - WYNN - close: 73.64 chg: +2.95 stop: 69.75

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:
Most of the casino and gambling stocks we looked at today turned in pretty strong performances. Shares of WYNN look like a tempting call candidate given today's bullish breakout over resistance at $72.00, its 50-dma and 100-dma. We are suggesting calls with WYNN above $72.00. Our target is the $79.50-80.00 range. The P&F chart has a spread triple-top breakout buy signal with an $86 target. We do not want to hold over the early August earnings report.

Suggested Options:
We are suggesting the August calls.

BUY CALL AUG 70.00 UWY-HN open interest=206 current ask $6.50
BUY CALL AUG 75.00 UWY-HO open interest= 57 current ask $3.60
BUY CALL AUG 80.00 UWY-HP open interest= 63 current ask $1.80

Picked on June 29 at $ 73.64
Change since picked: + 0.00
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume = 1.0 million
 

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New Strangles

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