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None ACL None
  UFPI  

New Calls

None today.
 

New Puts

Alcon Inc. - ACL - close: 109.00 chg: -4.37 stop: 110.41

Company Description:
Alcon, Inc. is the world's leading eye care company. Alcon, which has been dedicated to the ophthalmic industry for more than 50 years, develops, manufactures and markets pharmaceuticals, surgical equipment and devices, contact lens care solutions and other vision care products that treat diseases, disorders and other conditions of the eye. (source: company press release or website)

Why We Like It:
Traders were not happy with ACL's earnings report. The company missed estimates by one cent but they did guide slightly higher for the next quarter. Investors sold the news anyway and shares of ACL plunged through potential support near $110 and its 200-dma. Shares dipped to an intraday low of $105.85 before bouncing back. More aggressive traders might want to consider put positions on a new dip under $108. We want to see a new relative low first so we're suggesting a trigger to buy puts at $105.75. If triggered our target is the $100.10-100.00 level. We would consider this slightly more aggressive due to the wide stop loss we're suggesting.

Suggested Options:
We are suggesting the November or December puts. Our trigger to open plays is at $105.75. FYI: November strikes only have about four weeks left.

BUY PUT NOV 110.00 ACL-WB open interest= 926 current ask $3.70
BUY PUT NOV 105.00 ACL-WA open interest=1577 current ask $1.55

BUY PUT DEC 110.00 ACL-XB open interest= 10 current ask $4.80
BUY PUT DEC 105.00 ACL-XA open interest= 0 current ask $2.80

Picked on October xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/23/06 (confirmed)
Average Daily Volume = 520 thousand

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Univ.Forest Prod. - UFPI - cls: 46.13 chg: -1.40 stop: 50.01

Company Description:
Based in Grand Rapids, MI, Universal Forest Products markets, manufactures and engineers wood and wood-alternative products for D-I-Y retail home centers, structural lumber products for the manufactured housing industry, engineered wood components for the site-built construction market and specialty wood packaging for various industries. (source: company press release or website)

Why We Like It:
UFPI spent most of August and September trying to build a base but trouble started anew with the company's latest earnings report. Back on October 16th UFPI reported earnings and missed by 24 cents. The stock gapped down and shares have been slipping lower since. Now the stock is hitting new 52-week lows with today's decline on strong volume. There is a chance that UFPI might find support near $45.00 but odds look good the stock will trade toward the $40 level. We're aiming for a decline into the $41.00-40.00 range. We are using a wide stop loss until we see how shares react to the $45 level.

Suggested Options:
We are suggesting the November or December puts. FYI: The November strikes expire in about four weeks.

BUY PUT NOV 50.00 UAD-WJ open interest=402 current ask $4.60
BUY PUT NOV 45.00 UAD-WI open interest= 75 current ask $1.40

BUY PUT DEC 50.00 UAD-XJ open interest= 0 current ask $5.10
BUY PUT DEC 45.00 UAD-XI open interest= 0 current ask $2.25

Picked on October 24 at $ 46.13
Change since picked: + 0.00
Earnings Date 10/16/06 (confirmed)
Average Daily Volume = 192 thousand
 

New Strangles

None today.
 

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