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CTSH None None

New Calls

Cognizant Tech. - CTSH - close: 71.20 chg: +2.12 stop: 68.45

Company Description:
Cognizant is a leading provider of IT services. Focused on delivering strategic information technology solutions that address the complex business needs of its clients, Cognizant uses its own on-site/offshore outsourcing model to provide applications management, development, integration, and reengineering; infrastructure management; business process outsourcing; and numerous related services, such as enterprise consulting, technology architecture, program management, and change management. (source: company press release or website)

Why We Like It:
Software stocks were showing strength today and shares of CTSH really out performed the markets and its peers with a 3% rebound from the bottom of its recent trading range and its six-week trendline of support. Most of the stock's technical indicators have turned bullish and the Point & Figure chart points to a $92 target. Aggressive traders might want to buy calls here. We want to see a little more confirmation so we're suggesting a trigger to buy calls at $71.55. Conservative traders may want to wait for a new high over the $72.00 level. We're placing our stop loss under today's low. Our target is the $76.50-77.50 range.

Suggested Options:
We are suggesting the October calls.

BUY CALL OCT 70.00 UPU-JN open interest=4190 current ask $4.40
BUY CALL OCT 75.00 UPU-JO open interest= 973 current ask $2.00

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/01/06 (unconfirmed)
Average Daily Volume = 1.4 million

New Puts

None today.

New Strangles

None today.

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