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Apache - APA - close: 70.40 chg: +1.28 stop: 67.95

Company Description:
Apache Corporation is a large oil and gas independent with operations in the United States, Canada, the United Kingdom sector of the North Sea, Egypt, Australia and Argentina. (source: company press release or website)

Why We Like It:
We are going to add some exposure to the oil sector again. The group has been showing strength and the drama between the U.S. and Iran is only going to get worse, which will put pressure on oil prices. Shares of APA look like a tempting call candidate. The stock pulled back to a 50% retracement of its January rally and then bounced after testing support near $68 and its 50-dma. Today's rally over the $70 level on above average volume is an entry point but bullish positions. Our target is the $74.50-75.00 range. The P&F chart is much more bullish with a projected price target of $94.

Suggested Options:
We are suggesting the April calls.

BUY CALL APR 65.00 APA-DM open interest=3133 current ask $6.60
BUY CALL APR 70.00 APA-DN open interest=7790 current ask $3.10
BUY CALL APR 75.00 APA-DO open interest=6212 current ask $1.05

Picked on February 22 at $ 70.40
Change since picked: + 0.00
Earnings Date 05/03/07 (unconfirmed)
Average Daily Volume = 3.3 million

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