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Call Options Plays
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Strangle Options Plays
BXP None None
CAT    
CI    
INFY    

New Calls

Boston Properties - BXP - cls: 119.47 chg: +0.92 stop: 114.49

Company Description:
Boston Properties is a fully integrated, self-administered and self- managed real estate investment trust that develops, redevelops, acquires, manages, operates and owns a diverse portfolio of Class-A office properties that also includes two hotels. (source: company press release or website)

Why We Like It:
If the housing data out today has eased investors' fears about real estate in general then we are going to dip our foot into the REIT sector again. Shares of BXP have been consolidating sideways the last few weeks and have essentially produced a bullish double-bottom pattern with the early March and late March lows. Volume has picked up on the recent rebound. We are suggesting calls if BXP can breakout through the top of its trading range. Our suggested trigger to open positions is $120.75. More conservative traders may want to put their trigger above the 50-dma near $121.40. If triggered at $120.75 our target is the $127.00-130.00 range. We do not want to hold over the April 24th earnings report.

Suggested Options:
We are suggesting the May calls. Our trigger is at $120.75. You may want to consider June calls for more open interest.

BUY CALL MAY 115 BXP-EC open interest= 0 current ask $7.00
BUY CALL MAY 120 BXP-ED open interest= 1 current ask $3.70
BUY CALL MAY 125 BXP-EE open interest= 0 current ask $1.55

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/24/07 (confirmed)
Average Daily Volume = 1.3 million

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Caterpillar - CAT - cls: 67.24 chg: +0.49 stop: 65.45

Company Description:
For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2006 sales and revenues of $41.517 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. (source: company press release or website)

Why We Like It:
The rebound in CAT has struggled with resistance near $68.00. Yet we suspect the stock is poised to breakout higher. The February highs were near $68.43. We're suggesting a trigger to buy calls at $68.55. That way CAT will have to clear resistance near $68.00, the February highs and the multi-month trend of lower highs (see the weekly chart). We'll use a stop loss under the recent lows. If triggered at $68.55 our target is the $73.00-74.00 range under the August 2006 highs. We do not want to hold over the late April earnings report.

Suggested Options:
We are suggesting the May calls. Our trigger is at $68.55.

BUY CALL MAY 65.00 CAT-EM open interest=25174 current ask $3.55
BUY CALL MAY 67.50 CAT-EU open interest=12495 current ask $2.04
BUY CALL MAY 70.00 CAT-EN open interest=12714 current ask $1.05
BUY CALL MAY 72.50 CAT-EA open interest= 5994 current ask $0.49

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/20/07 (unconfirmed)
Average Daily Volume = 6.3 million

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Cigna - CI - close: 146.70 chg: +2.75 stop: 141.39

Company Description:
CIGNA Corporation and its subsidiaries constitute one of the largest investor owned health and related benefits organizations in the United States. (source: company press release or website)

Why We Like It:
Healthcare stocks have been showing strength lately. CI already has a steady, longer-term up trend. The recent consolidation under the $147.50 level has a bullish trend of higher lows and CI looks poised to breakout to new highs again. We are suggesting a trigger to buy calls on CI at $147.75. There is potential round-number, psychological resistance at $150. However, given the generally sideways action over the last several weeks we suspect that CI will breakout past $150. If triggered at $147.75 our target is the $154.50-155.00 range. We do not want to hold over the May 2nd earnings report.

Suggested Options:
We are suggesting the May calls. Our trigger is at $147.75.

BUY CALL MAY 145 CI-EI open interest=319 current ask $6.20
BUY CALL MAY 150 CI-EJ open interest=199 current ask $3.60

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/02/07 (confirmed)
Average Daily Volume = 910 thousand

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Infosys - INFY - cls: 51.69 chg: +1.88 stop: 49.79

Company Description:
Infosys defines, designs and delivers IT-enabled business solutions that help Global 2000 companies win in a flat world. (source: company press release or website)

Why We Like It:
This is an aggressive buy-the-bounce play. INFY very clearly broke its bullish up trend with the early March breakdown. The stock has bounced around above the $50 level and its 200-dma, which happens to be near the 38.2% Fibonnaci retracement level. Given the big volume on the recent test of the 200-dma and today's bounce, we suspect that INFY might rebound into its earnings report less than a week and a half from now. We're suggesting positions now or on a dip towards $50.00. We'll put the stop just under the recent low. Our target is the $54.75-55.00 range, where we expect shares to encounter resistance with the 50-dma and 100-dma overhead. We repeat that this is an aggressive, higher-risk play. Many of the technicals and the P&F chart are bearish for INFY. We plan to exit on Thursday, April 12th to avoid earnings on Friday the next day.

Suggested Options:
We are suggesting the May calls.

BUY CALL MAY 50.00 IUN-EJ open interest= 603 current ask $4.00
BUY CALL MAY 55.00 IUN-EK open interest=2952 current ask $1.60

Picked on April 03 at $ 51.69
Change since picked: + 0.00
Earnings Date 04/13/07 (confirmed)
Average Daily Volume = million
 

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