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New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
BA None None
CAI    
JCI    

New Calls

Boeing - BA - close: 90.80 chg: +0.64 stop: 88.95

Company Description:
Boeing is the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined. (source: company press release or website)

Why We Like It:
BA is marching its way back toward resistance in the $92.00 area. If the markets continue to bounce then BA has a strong chance of breaking out. The P&F chart is already bullish and points to a $107 target. We are suggesting a trigger to buy calls at $92.15, to catch a breakout over resistance. If triggered our target is the $99.50-100.00 range. We do not want to hold over the late April earnings report.

Suggested Options:
We are suggesting the May calls. Our suggested trigger to open plays is at $92.15.

BUY CALL MAY 90.00 BA-ER open interest=8275 current ask $3.60
BUY CALL MAY 95.00 BA-ES open interest=9360 current ask $1.40
BUY CALL MAY 100.0 BA-ET open interest=6917 current ask $0.45

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 4.2 million

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CACI Intl - CAI - cls: 48.36 chg: +1.06 stop: 46.64

Company Description:
CACI International Inc provides the IT and network solutions needed to prevail in today's new era of defense, intelligence, and e-government. (source: company press release or website)

Why We Like It:
CAI suffered a huge gap down back in January after issuing an earnings warning. The stock has spent the last three months consolidating sideways following that revelation. Now it looks like shares are finally poised to recover some if its losses. Today's 2.2% rally produced a breakout over short-term resistance near $48.00 and a breakout over technical resistance at its 50-dma. We're suggesting call positions now although more conservative traders may want to wait for a move over the January 18th high near $48.90 first. Our target is the $52.50 mark. We do not want to hold over the late April earnings.

Suggested Options:
We are suggesting the May calls. Traders might want to consider using April calls, which have more open interest.

BUY CALL MAY 47.50 CAI-EB open interest= 0 current ask $2.85
BUY CALL MAY 50.00 CAI-EJ open interest= 5 current ask $1.60

Picked on March 21 at $ 48.36
Change since picked: + 0.00
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 517 thousand

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Johnson Controls - JCI - cls: 96.03 chg: +0.74 stop: 93.99

Company Description:
Johnson Controls is a global leader in automotive experience, building efficiency and power solutions. The company provides innovative automotive interiors that help make driving more comfortable, safe and enjoyable. (source: company press release or website)

Why We Like It:
JCI has spent the last four weeks consolidating sideways after an impressive run up. The consolidation took a neutral stance with lower highs and higher lows. It's not uncommon for a stock to breakout from a neutral pattern and continue with the preceding trend, in this case that's upward. The technical indicators are suggesting the next move is higher and the P&F chart is already bullish with a $102 target. We believe that today's rally looks like a bullish breakout from JCI's consolidation. Our short-term target is the $99.75-100.00 range. More aggressive traders may want to aim higher! We do not want to hold over the late April earnings report.

Suggested Options:
We are suggesting the May calls although Aprils might work and have more open interest.

BUY CALL MAY 95.00 JCI-ES open interest= 0 current ask $4.50
BUY CALL MAY 100.0 JCI-ET open interest=25 current ask $2.05

Picked on March 21 at $ 96.03
Change since picked: + 0.00
Earnings Date 04/20/07 (unconfirmed)
Average Daily Volume = million
 

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New Strangles

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