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New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
HAL None None
ITG    
RTP    

New Calls

Halliburton - HAL - close: 75.58 chg: +2.93 stop: 71.99

Company Description:
Halliburton, founded in 1919, is one of the largest providers of products and services to the petroleum and energy industries. The company services its customers with a broad range of products and services through its Energy Services Group and KBR. (source: company press release or website)

Why We Like It:
We wanted to add some exposure to the oil and oil services sector so we're adding HAL, one of the largest oil service companies. HAL produced a big bounce today and looks poised to breakout past resistance at the $76.00 level. The P&F chart has already broken out past resistance and points to an $87.00 target. We are labeling this a slightly more aggressive play because of our time frame. We do not want to hold over HAL's earnings report on July 20th. Further crimping the time we have for the play to work is our decision to use a trigger. We want to use a trigger at $76.05 to open call plays. Conservative traders may want to use a tighter stop. We are going to have two targets. Our conservative target will be the $79.85 mark. Our aggressive target will be the $82.00 level. Please note that HAL is due to split 2-for-1 on July 17th.

Suggested Options:
We are suggesting the August calls.

BUY CALL AUG 75.00 HAL-HO open interest=7118 current ask $3.90
BUY CALL AUG 80.00 HAL-HP open interest=3458 current ask $1.70

Picked on July xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 7.9 million

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Investment Tech - ITG - close: 51.00 chg: +1.85 stop: 48.95

Company Description:
Investment Technology Group, Inc., is a specialized agency brokerage and technology firm that partners with clients globally to provide innovative solutions spanning the entire investment process. A pioneer in electronic trading, ITG has a unique approach that combines pre-trade analysis, order management, trade execution, and post-trade evaluation to provide clients with continuous improvements in trading and cost efficiency. The firm is headquartered in New York with offices in North America, Europe and the Asia Pacific regions. (source: company press release or website)

Why We Like It:
ITG is showing some relative strength compared to other stocks in the investment services arena. Shaves have spent the last week consolidation sideways between $48.00 and $50.75 oscillating around its 50-dma and 100-dma. Today's move looks like a bullish breakout. The Point & Figure chart is already bullish with a $66.00 price target. We are going to suggest calls with ITG above $50.00. Our short-term target will be the $54.95-55.00 range. We do not want to hold over the late July earnings report. More aggressive traders might want to aim higher and use a wider stop (under $48.00).

Suggested Options:
We are suggesting the August calls.

BUY CALL AUG 50.00 ITG-HJ open interest= 80 current ask $3.90
BUY CALL AUG 55.00 ITG-HK open interest= 93 current ask $1.75

Picked on July 11 at $ 51.00
Change since picked: + 0.00
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 700 thousand

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Rio Tinto - RTP - close: 213.71 chg: +6.67 stop: 205.90

Company Description:
Rio Tinto is a world leader in finding, mining and processing the earth's mineral resources. Major products include aluminium, copper, diamonds, energy products (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc and zircon), and iron ore. The Group's activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa. (source: company press release or website)

Why We Like It:
Gold turned in a big move today, up 2.7%, as investors reacted to the India bombings. On a technical basis Gold just broke out over its simple 50-dma. Meanwhile RTP, a mining stock, is poised to breakout over its 50-dma. We think it will breakout so we're suggesting calls at current levels (anywhere above $210). More conservative traders might want to wait for the breakout past the 50-dma and the $215.00 level. The Point & Figure chart points to a $240 target. We are going to aim for a rally into the $225.00-228.00 range. We do not want to hold over the early August earnings report. Please note that RTP can be a volatile stock so expect the big intraday moves.

Suggested Options:
We are suggesting the August calls.

BUY CALL AUG 210.00 RTP-HB open interest= 92 current ask $14.70
BUY CALL AUG 220.00 RTP-HD open interest= 18 current ask $10.10

Picked on July 11 at $213.71
Change since picked: + 0.00
Earnings Date 08/03/06 (unconfirmed)
Average Daily Volume = 492 thousand
 

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New Strangles

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