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None COF None
  FMCN  
  NEU  

New Calls

None today.
 

New Puts

Capital One Finc. - COF - cls: 79.33 change: -1.88 stop: 82.05

Company Description:
Headquartered in McLean, Virginia, Capital One Financial Corporation is a financial holding company, with more than 342 locations in Texas and Louisiana. Its principal subsidiaries, Capital One Bank, Capital One, F.S.B., Capital One Auto Finance, Inc., and Capital One, N.A., offer a broad spectrum of financial products and services to consumers, small businesses and commercial clients. (source: company press release or website)

Why We Like It:
The up trend in COF has been broken. The stock rallied strongly from its August lows but began to run out of steam the last few days. Daily technical indicators have turned negative and today's 2.3% decline (definite relative weakness) was fueled by strong volume. We are suggesting put positions with COF under $80.00. There is potential support at the 50-dma near $77 but our target is the $75.10-75.00 range.

Suggested Options:
We are suggesting the December puts.

BUY PUT DEC 80.00 COF-XP open interest=5088 current ask $2.85
BUY PUT DEC 75.00 COP-XO open interest=1177 current ask $1.10

Picked on October 31 at $ 79.33
Change since picked: + 0.00
Earnings Date 10/18/06 (confirmed)
Average Daily Volume = 2.4 million

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Focus Media - FMCN - close: 52.89 change: -3.41 stop: 56.55

Company Description:
Focus Media Holding Limited is China's leading out-of-home multi-platform life-style media company, which operates the largest out-of- home advertising network in China using audiovisual flat-panel displays. Based on an audience-centric approach, Focus Media provides targeted advertising channels which cover specific demographics groups and their daily activities, from office buildings to retail chain stores, residential building, shopping malls, golf country clubs, airports, and airport transit buses. (source: company press release or website)

Why We Like It:
Watch out below! Shares of FMCN just broke down from a massive, six-month consolidation pattern. Today's decline is also a breakdown under support at $56.00 and $55.00. The strong volume is another bearish signal and the P&F chart just produced a new triple-bottom breakdown sell signal. We're suggesting put positions right here under $55.00. If you're the patient type then consider waiting for an oversold bounce back toward $54-55 as a new entry point. We do expect an initial bounce at $50.00 but our target is the $48.00-47.00 range. We do not want to hold over the November 20th earnings report.

Suggested Options:
We are suggesting the December puts.

BUY PUT DEC 55.00 QOH-XK open interest= 0 current ask $5.30
BUY PUT DEC 50.00 QOH-XJ open interest=36 current ask $2.75

Picked on October 31 at $ 52.89
Change since picked: + 0.00
Earnings Date 11/20/06 (confirmed)
Average Daily Volume = 660 thousand

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NewMarket - NEU - close: 64.30 change: -1.59 stop: 67.05

Company Description:
NewMarket Corporation through its subsidiaries, Afton Chemical Corporation and Ethyl Corporation, develops, manufactures, blends, and delivers chemical additives that enhance the performance of petroleum products. From custom-formulated chemical blends to market-general additive components, the NewMarket family of companies provides the world with the technology to make fuels burn cleaner, engines run smoother and machines last longer. (source: company press release or website)

Why We Like It:
After hitting a new all-time high at the $70.00 level on October 26th the stock has been trending lower. Now the technical indicators on the daily chart have turned bearish and the P&F chart is close to a bearish reversal. We see the decline under $65.00 as a new entry point to buy puts. We are suggesting two targets. Our conservative target is the $60.20-60.00 range. Our aggressive target is the $56.00 level.

Suggested Options:
We are suggesting the December puts.

BUY PUT DEC 65.00 NEU-XM open interest= 72 current ask $5.10
BUY PUT DEC 60.00 NEU-XL open interest=264 current ask $2.90

Picked on October 31 at $ 64.30
Change since picked: + 0.00
Earnings Date 10/25/06 (confirmed)
Average Daily Volume = 354 thousand
 

New Strangles

None today.
 

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