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New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
ATI None None
COP    
HOC    
LEND    
SUN    

New Calls

Allegheny Tech. - ATI - cls: 101.50 chg: +1.15 stop: 97.95

Company Description:
Allegheny Technologies Incorporated is one of the largest and most diversified specialty metals producers in the world with revenues of $4.9 billion during 2006. ATI has approximately 9,500 full-time employees world-wide who use innovative technologies to offer growing global markets a wide range of specialty metals solutions. (source: company press release or website)

Why We Like It:
Traders were quick to buy the dip in ATI near its rising 50-dma midday. Volume came in pretty strong and shares posted a 1.1% gain. There is some resistance near $105 but we suspect that ATI will make a run at its highs near $110. We're suggesting call positions with ATI above $100. Our target is the $109.00-110.00 range. We do not want to hold over the late April earnings report. FYI: The P&F chart points to a $123 target.

Suggested Options:
We are suggesting the April calls since Mays are not yet available.

BUY CALL APR 100 ATI-DT open interest=3411 current ask $6.60
BUY CALL APR 105 ATI-DA open interest=2549 current ask $4.10
BUY CALL APR 110 ATI-DB open interest=4239 current ask $2.40

Picked on March 14 at $101.50
Change since picked: + 0.00
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 2.6 million

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ConocoPhillips - COP - cls: 67.91 chg: +1.32 stop: 65.74

Company Description:
ConocoPhillips is an integrated petroleum company with interests around the world. (source: company press release or website)

Why We Like It:
Many of the oil stocks look poised to breakout higher from their current consolidation patterns. COP is one of them and shares have rallied back toward resistance in the $68.75 region. We are suggesting a trigger to buy calls at $69.01 since a move over $69.00 would produce a new triple-top breakout buy signal on the P&F chart. If we are triggered at $69.01 our target is the $74.00-75.00 range. We do not want to hold over the late April earnings report.

Suggested Options:
We are suggesting the May calls.

BUY CALL MAY 65.00 COP-EM open interest=37160 current ask $5.10
BUY CALL MAY 70.00 COP-EN open interest=42609 current ask $2.20

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 12.1 million

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Holly Corp. - HOC - cls: 57.87 chg: +1.42 stop: 54.95

Company Description:
Holly Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel and jet fuel. (source: company press release or website)

Why We Like It:
HOC is an oil stock that is already breaking out higher. Shares broke out to new all-time highs yesterday and today's 2.5% rally on strong volume marks a new closing high. We see the rally past resistance near $57.00 as a new entry point to buy calls. More conservative traders may want to wait for a rise past $58.00 before opening plays. Our target is the $62.00-62.50 range. The P&F chart is bullish with a $74.00 target.

Suggested Options:
We are suggesting the April options but would prefer Mays, which will probably become available next week.

BUY CALL APR 55.00 HOC-DK open interest=1772 current ask $4.10
BUY CALL APR 60.00 HOC-DL open interest= 469 current ask $1.45

Picked on March 14 at $ 57.87
Change since picked: + 0.00
Earnings Date 05/14/07 (unconfirmed)
Average Daily Volume = 651 thousand

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Accredited Home Lenders - LEND - cls: 6.04 chg: +2.07 stop: n/a

Company Description:
Accredited Home Lenders, Inc., is a premier mortgage banker servicing all U.S. markets for non-prime residential mortgage loans. (source: company press release or website)

Why We Like It:
We might have better luck with a lottery play on LEND. This past weekend we suggested a lottery play on NEW but the stock continued to implode. LEND might be in the same boat but now rumors are circulating that LEND is a takeover candidate and one of the bigger brokers might bite. There is no guarantee that LEND won't implode too. By nature a lottery play is very risky. We are suggesting some out of the money options in a gamble that LEND will be taken over and the buyout price will suddenly put our options in the money. You can choose the April or June options but we suspect that any sort of deal will probably happen before April options expiration. FYI: It's possible that if investor sentiment improves on the sub-prime lenders then short-covering alone might push LEND back above $10 over the next few weeks.

Suggested Options:
We're suggesting the April calls. Remember, this is a very speculative play.

BUY CALL APR 7.50 QFW-DU open interest=2658 current ask $1.40
BUY CALL APR 10.00 QFW-DB open interest=1415 current ask $0.75
BUY CALL APR 12.50 QFW-DV open interest= 464 current ask $0.35

Picked on March 14 at $ 6.04
Change since picked: + 0.00
Earnings Date 05/16/07 (unconfirmed)
Average Daily Volume = 3.0 million

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Sunoco - SUN - close: 67.21 chg: +0.99 stop: 63.95

Company Description:
Sunoco, Inc., headquartered in Philadelphia, PA, is a leading manufacturer and marketer of petroleum and petrochemical products. With 900,000 barrels per day of refining capacity, nearly 4,700 retail sites selling gasoline and convenience items, approximately 5,500 miles of crude oil and refined product owned and operated pipelines and 38 product terminals, Sunoco is one of the largest independent refiner-marketers in the United States. (source: company press release or website)

Why We Like It:
SUN is another oil-related stock that looks poised to breakout from its consolidation pattern. Shares recently pushed through technical resistance at its simple and exponential 200-dma. Plus, volume has been very strong on the recent rally. More aggressive traders may want to consider buying calls now. We want to see a breakout over $68.00 first. Our suggested trigger to open positions is at $68.15. If triggered our target is the $74.00-75.00 range. We do expect some resistance near $70.00. The P&F chart is very bullish with an $82 target.

Suggested Options:
We are suggesting the May calls.

BUY CALL MAY 65.00 SUN-EM open interest=2730 current ask $5.10
BUY CALL MAY 70.00 SUN-EN open interest=4939 current ask $2.50

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/02/07 (unconfirmed)
Average Daily Volume = 2.8 million
 

New Puts

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New Strangles

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