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New Option Plays

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Call Options Plays
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Strangle Options Plays
HIG None None
LVS    
MAN    

New Calls

Hartford Finc. - HIG - close: 86.29 chg: +1.19 stop: 82.99

Company Description:
The Hartford, a Fortune 100 company, is one of the nation's largest financial services and insurance companies, with 2005 revenues of $27.1 billion. The Hartford is a leading provider of investment products, life insurance and group benefits; automobile and homeowners products; and business property and casualty insurance. International operations are located in Japan, Brazil and the United Kingdom. (source: company press release or website)

Why We Like It:
We have had our eye on HIG as a potential bullish candidate the last couple of days. Friday's intraday bounce looked like a bullish reversal as did the Thursday-Friday-Monday candlestick pattern. Today's rally helped seal the deal with a bullish breakout over its 100-dma, 200-dma and resistance near $86.00. Short-term technical indicators have turned bullish again and the pattern over the last couple of months looks like an inverse(bullish) head-and-shoulders pattern. The recent move over $86.00 has produced a triple-top breakout buy signal on its P&F chart that now points to a $99 target. We are suggesting call positions with HIG above $86.00. Our target is the $91.50-92.00 range, near its May highs. However, we do expect some resistance in the $89-90 region. We do not want to hold over the early November earnings report.

Suggested Options:
We are suggesting the October calls. You, the individual trader, should decide which month and strike price best suits your trading style and risk.

BUY CALL OCT 80.00 HIG-JP open interest= 76 current ask $7.10
BUY CALL OCT 85.00 HIG-JQ open interest=526 current ask $3.00
BUY CALL OCT 90.00 HIG-JR open interest=411 current ask $0.70

Picked on September 12 at $ 86.29
Change since picked: + 0.00
Earnings Date 11/02/06 (unconfirmed)
Average Daily Volume = 1.4 million

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Las Vegas Sands - LVS - close: 72.14 chg: +2.91 stop: 67.95

Company Description:
The Las Vegas, Nevada-based company owns The Venetian Resort Hotel Casino and the Sands Expo and Convention Center in Las Vegas and the Sands Macao in the People's Republic of China (PRC) Special Administrative Region of Macao. The company is currently constructing two additional integrated resorts both scheduled to open in 2007: The Palazzo Resort Hotel Casino in Las Vegas and The Venetian Macao Resort Hotel Casino in Macao. LVS is also developing the Cotai Strip(TM), a master-planned development of resort casino properties in Macao, and was selected by the Singapore government to build The Marina Bay Sands(TM), an integrated resort scheduled to open in Singapore by the end of 2009. (source: company press release or website)

Why We Like It:
LVS continues to rally following its bullish breakout from the early August consolidation pattern. Momentum began to stall out a couple of weeks ago but traders have returned to buy the dip and push shares to a new six-week high. The P&F chart is bullish and points to an $85 target. We think the rally can push LVS back toward its June-July highs. We're going to suggest call positions with LVS above $70.00. Traders can choose to open plays here or wait for a possible dip back towards $70.00. More conservative traders may want to wait for rise past potential resistance at the $72.50 level. Our target is the $77.50-79.00 range. We do not want to hold over the early November earnings report.

Suggested Options:
We are suggesting the October calls.

BUY CALL OCT 70.00 LVS-JN open interest=1067 current ask $5.30
BUY CALL OCT 75.00 LVS-JO open interest=1416 current ask $2.75

Picked on September 12 at $ 72.14
Change since picked: + 0.00
Earnings Date 11/01/06 (unconfirmed)
Average Daily Volume = 2.2 million

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Manpower - MAN - close: 60.28 chg: +2.51 stop: 56.99

Company Description:
Manpower Inc. is a world leader in the employment services industry; creating and delivering services that enable its clients to win in the changing world of work. The $16 billion company offers employers a range of services for the entire employment and business cycle including permanent, temporary and contract recruitment; employee assessment and selection; training; outplacement; outsourcing and consulting. Manpower's worldwide network of 4,400 offices in 72 countries and territories enables the company to meet the needs of its 400,000 clients per year, including small and medium size enterprises in all industry sectors, as well as the world's largest multinational corporations. (source: company press release or website)

Why We Like It:
Shares of MAN appeared to produce a trading bottom in August near round-number support at $55. Since then the stock has consolidated sideways under resistance at the $60.00 level. Shares recently tested technical support at the 200-dma and today's rally is a bullish breakout over resistance at $60.00 and its 50-dma. We are going to suggest calls with MAN above the $60 level. Traders need to be nimble here. If we don't see some immediate follow through higher tomorrow (maybe Thursday) we might abandon ship pretty quickly. We're going to stick the stop loss under the recent low. More conservative traders may want to wait for a rally over $61.00, which would reverse the Point & Figure chart from a sell signal into a new buy signal. We do expect some resistance at the 100-dma near $62.50. Our target is the $65.00-66.00 range.

Suggested Options:
We are suggesting the October calls.

BUY CALL OCT 55.00 MAN-JK open interest= 20 current ask $6.40
BUY CALL OCT 60.00 MAN-JL open interest=121 current ask $2.85
BUY CALL OCT 65.00 MAN-JM open interest= 82 current ask $0.90

Picked on September 12 at $ 60.28
Change since picked: + 0.00
Earnings Date 10/18/06 (unconfirmed)
Average Daily Volume = 900 thousand
 

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New Strangles

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