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New Option Plays

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CELG None None
R    
SEE    

New Calls

Celgene - CELG - close: 56.28 change: +1.41 stop: 53.85

Company Description:
Celgene Corporation, headquartered in Summit, New Jersey, is an integrated global biopharmaceutical company engaged primarily in the discovery, development and commercialization of novel therapies for the treatment of cancer and inflammatory diseases through gene and protein regulation. (source: company press release or website)

Why We Like It:
CELG isn't letting the relative weakness in the BTK biotech index slow it down. Shares of CELG spent the last several weeks consolidating sideways and digesting its September-December gains. That consolidation appears to be over. Friday's session witnessed a 2.5% rally on above average volume and a bullish breakout over its simple 50-dma. We are suggesting bullish call positions with CELG above its 50-dma. Our short-term target is the old highs in the $59.75-60.00 range. More conservative traders may want to wait for a breakout past $57 and use a tighter stop loss.

Suggested Options:
We are suggesting the April calls.

BUY CALL APR 55.00 LQH-DK open interest=15709 current ask $3.80
BUY CALL APR 60.00 LQH-DM open interest=11531 current ask $1.55

Picked on February 25 at $ 56.28
Change since picked: + 0.00
Earnings Date 05/03/07 (unconfirmed)
Average Daily Volume = 3.5 million

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Ryder Sys. - R - close: 54.83 chg: +1.52 stop: 53.45

Company Description:
Ryder is a Fortune 500 company providing leading-edge transportation, logistics and supply chain management solutions worldwide. (source: company press release or website)

Why We Like It:
An upgrade on Friday morning helped launch R into a 2.8% rally fueled by strong volume. The move was a bullish breakout over short-term resistance at $54.00 and more aggressive traders may want to buy it. We see additional resistance at the October 2006 and February 2007 highs. Therefore we are suggesting a trigger to buy calls at $55.75. If triggered our target is the $59.50-60.00 range. The P&F chart currently points to a $69 target.

Suggested Options:
We are suggesting the May calls although Aprils would also work well. Our suggested trigger is at $55.75.

BUY CALL MAY 52.50 R-EX open interest= 176 current ask $4.40
BUY CALL MAY 55.00 R-EK open interest= 600 current ask $2.95
BUY CALL MAY 57.50 R-EY open interest= 227 current ask $1.80

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/04/07 (unconfirmed)
Average Daily Volume = 580 thousand

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Sealed Air - SEE - close: 66.82 chg: -0.32 stop: 64.84

Company Description:
Sealed Air is a leading global manufacturer of a wide range of food and protective packaging materials and systems including such widely recognized brands as Bubble Wrap cushioning, Jiffy protective mailers and Cryovac food packaging products. (source: company press release or website)

Why We Like It:
Several days ago SEE announced a 2-for-1 stock split and the news helped push the stock through resistance in the $66 region. After surging to new multi-year highs the stock began to consolidate its recent gains on Thursday and Friday. We see the pull back, which was on mild volume, as a new entry point to buy the stock. Our short-term target is the $69.75-70.00 range but more aggressive traders may want to aim higher (maybe the $72.50 region). The P&F chart points to a $110 target. The 2-for-1 split is scheduled for March 16th.

Suggested Options:
We are suggesting the April calls.

BUY CALL APR 65.00 SEE-DM open interest=1038 current ask $3.20
BUY CALL APR 70.00 SEE-DN open interest= 440 current ask $0.75

Picked on February 25 at $ 66.82
Change since picked: + 0.00
Earnings Date 05/02/07 (unconfirmed)
Average Daily Volume = 296 thousand
 

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