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AAP None None
CLB    
NUE    

New Calls

Advance Auto Parts - AAP - cls: 39.56 chg: +0.91 stop: 37.95

Company Description:
Headquartered in Roanoke, Va., Advance Auto Parts is the second-largest retailer of automotive aftermarket parts, accessories, batteries, and maintenance items in the United States, based on store count and sales. As of December 30, 2006, the Company operated 3,082 stores in 40 states, Puerto Rico, and the Virgin Islands. The Company serves both the do-it-yourself and professional installer markets. (source: company press release or website)

Why We Like It:
We suspect that the slow march higher in AAP is going to turn into a breakout as the stock coils under resistance at the $40.00 level. AAP has a bullish trend of higher lows and a bullish Point & Figure chart with a $48 target. We are suggesting a trigger to buy calls on AAP at $40.05 to capture any breakout higher. If triggered our target is the $44.50-45.00 range. We do not want to hold over the mid-May earnings report.

Suggested Options:
We are suggesting the June calls although May strikes would also work well. As with all of our suggested plays, it is up to the individual trader to determine which strike price and which month best suits their trading style and risk. Our suggested trigger for AAP is $40.05.

BUY CALL JUN 35.00 AAP-FG open interest=9233 current ask $5.50
BUY CALL JUN 40.00 AAP-FH open interest=1208 current ask $1.95
BUY CALL JUN 45.00 AAP-FI open interest= 284 current ask $0.40

Annotated Chart:

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/17/07 (unconfirmed)
Average Daily Volume = 854 thousand

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Core Labs - CLB - cls: 87.25 chg: +2.56 stop: 81.95

Company Description:
Core Laboratories N.V. is a leading provider of proprietary and patented reservoir description, production enhancement, and reservoir management services used to optimize petroleum reservoir performance. The Company has over 70 offices in more than 50 countries and is located in every major oil-producing province in the world. (source: company press release or website)

Why We Like It:
We remain bullish on oil and oil stocks in spite of last week's pull back. Shares of CLB didn't see much of a dip. Instead the stock continued to trade sideways in the $82-86 trading range. That changed on Thursday after one analyst firm started coverage on the stock and slapped a $92 price target on it. They weren't going out of their way with the price target since CLB has resistance at its old highs near $92.50 back in December 2006. The news still fueled a bullish, technical breakout and volume surged to almost three times the normal in spite of the holiday weekend. Technical indicators are turning bullish and the P&F chart is already bullish with a $115 target. We are suggesting call positions with CLB above $86.00. We'll set two targets. Our conservative target is $92.00. Our aggressive target is the $97.50-100.00 range, which might be a too optimistic given our time frame. We do not want to hold over the late April earnings report.

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

BUY CALL MAY 85.00 CLB-EQ open interest=79 current ask $5.30
BUY CALL MAY 90.00 CLB-ER open interest= 8 current ask $2.70

BUY CALL JUN 95.00 CLB-FS open interest=136 current ask $2.25

Annotated Chart:

Picked on April 08 at $ 87.25
Change since picked: + 0.00
Earnings Date 04/27/07 (unconfirmed)
Average Daily Volume = 275 thousand

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Nucor - NUE - cls: 66.51 chg: +0.85 stop: 63.89

Company Description:
Nucor and affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and alloy steel - in bars, beams, sheet and plate; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; light gauge steel framing; steel grating and expanded metal; and wire and wire mesh. Nucor is the nation's largest recycler. (source: company press release or website)

Why We Like It:
Shares of NUE were upgraded on Thursday and the stock touched a new three-month high and came close to breaking out to new all-time highs. If the markets can keep climbing then a new high in NUE seems like a good bet. The P&F chart is already bullish and points to an $80 target. Given the relative strength in the steel sector this looks like a good spot to bet on a breakout. We're suggesting a trigger to buy calls at $67.55. If triggered our target is the $72.50-75.00 range. We would aim higher but we don't have much time. Traders will need to exit ahead of the April 19th earnings report. FYI: We do expect some resistance at $70. Don't be surprised to see NUE bounce around the $67.50-70.00 range for a couple of days.

Suggested Options:
We are suggesting the May calls. Our trigger is at $67.55.

BUY CALL MAY 65.00 NUE-EM open interest=1502 current ask $4.30
BUY CALL MAY 70.00 NUE-EN open interest=2851 current ask $1.85
BUY CALL MAY 75.00 NUE-EO open interest= 271 current ask $0.55

Annotated Chart:

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/19/07 (confirmed)
Average Daily Volume = 3.8 million
 

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