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  POT  

New Calls

None today.
 

New Puts

Intuitive Surg. - ISRG - cls: 102.05 change: -1.82 stop: 107.51

Company Description:
Intuitive Surgical, Inc., headquartered in Sunnyvale, California, is the global technology leader in the rapidly emerging field of robotic-assisted, minimally invasive surgery (MIS). Intuitive Surgical develops, manufactures and markets robotic technologies designed to improve clinical outcomes and help patients return more quickly to active and productive lives. (source: company press release or website)

Why We Like It:
ISRG has spent the last year trading inside a very wide and volatile but neutral pennant pattern of lower highs and higher lows. The stock recently produced a new lower high and is retreating back toward its supporting trendline of higher lows. The technical indicators support a new leg lower. We are suggesting puts with today's decline under $103 and its 50-dma. More conservative traders might want to consider a tighter stop loss. Our target is the $96.00-95.00 range. We do not want to hold over the early February earnings report.

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

BUY PUT JAN 105.00 AXQ-MA open interest=1110 current ask $5.20
BUY PUT JAN 100.00 AXQ-MT open interest=2967 current ask $2.50
BUY PUT JAN 95.00 AXQ-MS open interest=1755 current ask $1.00

BUY PUT FEB 105.00 AXQ-NA open interest= 0 current ask $9.50
BUY PUT FEB 100.00 AXQ-NT open interest= 0 current ask $7.00
BUY PUT FEB 95.00 AXQ-NS open interest= 0 current ask $4.90

Picked on December 18 at $102.05
Change since picked: + 0.00
Earnings Date 02/01/07 (unconfirmed)
Average Daily Volume = 938 thousand

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Potash - POT - close: 134.67 change: -3.18 stop: 140.01

Company Description:
Potash Corporation of Saskatchewan Inc. is the world's largest fertilizer enterprise producing the three primary plant nutrients and a leading supplier to three distinct market categories: agriculture, with the largest capacity in the world in potash, third largest in phosphate and fourth largest in nitrogen; animal nutrition, with the world's largest capacity in phosphate feed ingredients; and industrial chemicals, as the largest global producer of industrial nitrogen products and one of only three North American suppliers of industrial phosphates. (source: company press release or website)

Why We Like It:
The bullish trend in POT appears to have run out of gas. The stock struggled to breakout past resistance at the $145.00 level for weeks. Now shares are beginning to see some profit taking as we head toward yearend. Monday's session witnessed a failed rally at the $140.00 level and a new four-week low. The drop under short-term support at the $135 level looks like a new entry point to buy puts. POT has been somewhat volatile over the last few months so we have a wide stop loss and traders should consider this a more aggressive play. POT may have support near $130 and its 50-dma but we are targeting the $125.00-122.00 range. Currently the P&F chart points to a $122 target.

Suggested Options:
We are suggesting the January puts, which expire in about five weeks. Readers may want to consider using February puts but keep in mind that we plan to exit ahead of the late January earnings report.

BUY PUT JAN 140.00 PVZ-MH open interest= 531 current ask $8.00
BUY PUT JAN 135.00 POT-MG open interest=1580 current ask $5.20
BUY PUT JAN 130.00 POT-MF open interest= 449 current ask $3.20
BUY PUT JAN 125.00 POT-ME open interest= 461 current ask $1.80

Picked on December 18 at $134.67
Change since picked: + 0.00
Earnings Date 01/24/07 (unconfirmed)
Average Daily Volume = 957 thousand
 

New Strangles

None today.
 

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