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None LAZ None
  PNRA  

New Calls

None today.
 

New Puts

Lazard Ltd. - LAZ - close: 35.00 chg: -1.30 stop: 36.75

Company Description:
Lazard, one of the world's preeminent financial advisory and asset management firms, operates from 29 cities across 16 countries in North America, Europe, Asia, Australia and South America. With origins dating back to 1848, the firm provides services including mergers and acquisitions advice, asset management, and restructuring advice to corporations, partnerships, institutions, governments, and individuals. (source: company press release or website)

Why We Like It:
The broker-dealer and investment-related stocks have been a popular target for profit taking lately. Shares of LAZ have definitely been showing relative weakness and the stock just broke technical support at its 200-dma on big volume. Technically the picture is bearish with a two-day old MACD sell signal and a triple-bottom-breakdown sell signal on the P&F chart with a $28 target. We are suggesting that readers use a trigger to open put positions because LAZ is looking somewhat oversold after two weeks of declines and if the markets are positive tomorrow then bulls might try to buy this dip near $35.00. Our suggested trigger to buy puts is at $34.49. If the stock bounces from here more nimble traders might want to try and enter on a failed rally near the top of its channel. If we are triggered at $34.49 our target will be the $31.00-30.00 range. We do not want to hold over the early August earnings report.

Suggested Options:
We're suggesting the August puts. You choose which strike works best for you.

BUY PUT AUG 35.00 LAZ-TG open interest=310 current ask $2.10
BUY PUT AUG 30.00 LAZ-TF open interest= 0 current ask $0.55

Picked on July xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/08/06 (unconfirmed)
Average Daily Volume = 504 thousand

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Panera Bread - PNRA - close: 60.71 chg: -1.39 stop: 62.01

Company Description:
Panera Bread Company owns and franchises bakery-cafes under the Panera Bread and Saint Louis Bread Co. names. The Company is a leader in the specialty bread/cafe category due to its unique bread combined with a quick, casual dining experience. (source: company press release or website)

Why We Like It:
A negative article in Barron's over the weekend is raising more doubts about PNRA. The stock has already been weak with a decline from $69 to support near $60. Today's session did see traders buy the dip but the bounce was fading into the closing bell. The technical picture on both the daily and weekly chart is bearish. Plus, the P&F chart is bearish with a $50 target. Considering the market environment and concerns over consumer spending we're going to list PNRA as a bearish candidate to buy puts. However, we're suggesting a trigger to open positions at $59.49. If triggered our target will be the $55.50-55.00 range. We do not want to hold over the July 25th earnings report.

Suggested Options:
We are suggesting the August puts.

BUY PUT AUG 60.00 UPA-TL open interest= 798 current ask $2.50
BUY PUT AUG 55.00 UPA-TK open interest= 592 current ask $0.90

Picked on July xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/25/06 (confirmed)
Average Daily Volume = 494 thousand
 

New Strangles

None
 

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