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ANDE None None
AVB    

New Calls

The Andersons Inc. - ANDE - cls: 39.00 chg: +1.37 stop: 37.75

Company Description:
The Andersons, Inc. is a diversified company with interests in the grain, ethanol and plant nutrient sectors of U.S. agriculture, as well as in railcar leasing and repair, turf products production, and general merchandise retailing. Founded in Maumee, Ohio, in 1947, the company now has operations in seven U.S. states plus rail leasing interests in Canada and Mexico. (source: company press release or website)

Why We Like It:
The incredibly volatile shares of ANDE have cooled somewhat after the stock's 2-for-1 split in June. The stock can still produce some violent moves and traders may want to use a wider stop loss. We suspect that the next move will be higher. ANDE has produced what appears to be a bullish double-bottom pattern over the last couple of months with support near $35.00. Technicals indicators have turned positive and now ANDE looks ready to breakout over $40.00 and its three-month trendline of resistance (lower highs, see chart). Aggressive traders may want to consider positions now. We're suggesting a trigger to buy calls at $40.51. There is potential resistance at the 50-dma near $42 but if the markets breakout higher on the jobs report and/or the FOMC meeting then we expect ANDE to push past the 50-dma. Our target is the $46.00-47.00 range.

Suggested Options:
We are suggesting the September calls.

BUY CALL SEP 35.00 AQA-IG open interest= 10 current ask $6.20
BUY CALL SEP 40.00 AQA-IH open interest= 60 current ask $3.00
BUY CALL SEP 45.00 AQA-II open interest= 71 current ask $1.00

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/28/06 (confirmed)
Average Daily Volume = 1.2 million

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Avalonbay Comm. - AVB - close: 116.88 chg: +1.27 stop: 114.90

Company Description:
AvalonBay Communities, Inc., headquartered in Alexandria, Virginia, currently owns or holds an ownership interest in 159 apartment communities containing 46,532 apartment homes in ten states and the District of Columbia, of which sixteen communities are under construction and four communities are under reconstruction. AvalonBay is in the business of developing, redeveloping, acquiring, and managing apartment communities in high barrier-to-entry markets of the United States. (source: company press release or website)

Why We Like It:
The REIT stocks seem to be doing well and showing plenty of relative strength. AVB is one REIT that is trading near all-time highs. The stock has been consolidating sideways the past few days in a narrow trading range. Today's bounce has put AVB on the verge of another bullish breakout. We want to catch the next leg higher so we're suggesting a trigger to buy calls at $117.55. If triggered our target is the $124.00-125.00 range. Currently the Point & Figure chart points to a $132 target. We do expect the $120 level to act as short-term resistance so don't be surprised to see AVB bounce around the $120-117.50 range. Once AVB breaks resistance at $117.50 it should become new short-term support. Please note that the jobs report is due out tomorrow morning before the market open. More conservative traders may want to wait and watch how the markets react to the news before considering new plays.

Suggested Options:
We are suggesting the September and October calls. You choose which month and which strike best suits your trading style and risk. Currently we don't see any $125 strikes available.

BUY CALL SEP 115.00 AVB-IC open interest= 2 current ask $6.00
BUY CALL SEP 120.00 AVB-ID open interest= 13 current ask $3.60

BUY CALL OCT 115.00 AVB-JC open interest=1276 current ask $6.50
BUY CALL OCT 120.00 AVB-JD open interest=1483 current ask $3.50

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/26/06 (confirmed)
Average Daily Volume = 319 thousand
 

New Puts

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New Strangles

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