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ATINoneNone
BG  
CHAP  
LMT  

New Calls

Allegheny Tech. - ATI - cls: 108.01 chg: -0.39 stop: 105.75

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:
We are going to take another swing at ATI. We recently played it on the newsletter and shares hit our target on Thursday. If the markets continue higher then ATI has a decent chance of breaking out over resistance at the $110 level. This is especially true since steel stocks remain strong and ATI could see some window dressing buying pressure this week. We're suggesting a trigger to buy calls at $110.26. If triggered our target is the $117.00-120.00 range. An alternative entry for the more nimble trader would be a dip near $105.00-106.00. FYI: The P&F chart points to a $123 target. We do not want to hold over the late April earnings report. Caution, we do see a bearish divergence between price and the MACD on the daily chart.

Suggested Options:
Our suggested trigger to buy calls is at $110.26. We are suggesting the May calls. Alert - The CBOE lists the May 110 call with a -EX suffix. Normally it would be -EB so double check with your broker.

BUY CALL MAY 105 ATI-EA open interest=142 current ask $8.70
BUY CALL MAY 110 ATI-EX open interest=263 current ask $6.00
BUY CALL MAY 115 ATI-EC open interest=347 current ask $3.90

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 2.6 million

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Bunge Ltd. - BG - cls: 79.89 chg: +0.54 stop: 77.95

Company Description:
Bunge Limited is a leading global agribusiness and food company founded in 1818 and headquartered in White Plains, New York. Bunge's over 22,000 employees in over 30 countries enhance lives by improving the global agribusiness and food production chain. The company supplies fertilizer to farmers in South America, originates, transports and processes oilseeds, grains and other agricultural commodities worldwide, produces food products for commercial customers and consumers and supplies raw materials and services to the biofuels industry. (source: company press release or website)

Why We Like It:
It looks like BG's correction is over and shares are rebounding back toward its highs. Traders bought the dip in mid-March where broken resistance had turned into new support. Technical indicators have turned positive on the daily chart. Plus, the P&F chart has reversed its sell signal into a new buy signal with a $93 target. Nimble traders may want to try and buy a dip in the $78.00-78.50 zone. We're suggesting that readers wait and buy a breakout over $80.70. Our suggested trigger to buy calls will be $80.75. If triggered our target is the $85.00-85.50 range. We do not want to hold over the late April earnings report.

Suggested Options:
Our suggested trigger to buy calls is at $80.75. We're suggesting the May strikes.

BUY CALL MAY 75.00 BG-EO open interest= 83 current ask $7.10
BUY CALL MAY 80.00 BG-EP open interest=220 current ask $3.80
BUY CALL MAY 85.00 BG-EQ open interest= 35 current ask $1.70

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/26/07 (unconfirmed)
Average Daily Volume = 990 thousand

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Chaparral Steel - CHAP - cls: 55.73 chg: +1.29 stop: 51.75

Company Description:
Chaparral Steel Company, headquartered in Midlothian, Texas, is the second largest producer of structural steel beams in North America. Chaparral is also a significant supplier of steel bar products. In addition, Chaparral is a North American recycling company. (source: company press release or website)

Why We Like It:
We don't have to worry about earnings for CHAP. The company reported last week and beat estimates by six cents. Management then guided higher going forward. The initial reaction in the stock price was to sell the news but traders quickly bought the dip near its rising 10-dma. CHAP is now hitting new all-time highs. Currently the steel sector is strong and we think CHAP has further to run. We are suggesting call positions now although a dip back toward $55 or $54 would be a preferable entry point. Our target is the $59.50-60.00 range. The P&F chart has a triple-top breakout buy signal with a $72 target.

Suggested Options:
We are suggesting the May calls. Please note that it is up to you, the individual trader, to determine which month and which strike price best suits your trading style and risk.

BUY CALL MAY 50.00 ZHQ-EJ open interest= 95 current ask $7.20
BUY CALL MAY 55.00 ZHQ-EK open interest= 87 current ask $3.80
BUY CALL MAY 60.00 ZHQ-EL open interest=162 current ask $1.65

Picked on March 25 at $ 55.73
Change since picked: + 0.00
Earnings Date 03/20/07 (confirmed)
Average Daily Volume = 627 thousand

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Lockheed Martin - LMT - cls: 99.15 chg: +1.24 stop: 97.49

Company Description:
Headquartered in Bethesda, Md., Lockheed Martin employs about 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The corporation reported 2006 sales of $39.6 billion. (source: company press release or website)

Why We Like It:
LMT has been a consistent winner for stockholders and shares could see some window dressing before the end of the quarter on Friday. Currently shares are consolidating under resistance at the $100.00 mark. We're suggesting a trigger to buy calls at $100.25. If triggered our short-term target is $104.85-105.00. More aggressive traders may want to aim higher since the P&F chart aims at a $128 target. We do not want to hold over the late April earnings report.

Suggested Options:
Our suggested trigger to buy calls in LMT is at $100.25. We are suggesting the May calls although Junes would work and have more open interest.

BUY CALL MAY 95.00 LMT-ES open interest= 56 current ask $6.20
BUY CALL MAY 100.0 LMT-ET open interest=256 current ask $3.00
BUY CALL MAY 105.0 LMT-EA open interest=192 current ask $1.10

Picked on March xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/26/07 (unconfirmed)
Average Daily Volume = 1.8 million
 

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