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New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
AMGN None None
BA    
CKH    
JOYG    

New Calls

Amgen - AMGN - cls: 57.64 change: +1.30 stop: 55.74

Company Description:
Amgen discovers, develops and delivers innovative human therapeutics. A biotechnology pioneer since 1980, Amgen was one of the first companies to realize the new science's promise by bringing safe and effective medicines from lab, to manufacturing plant, to patient. (source: company press release or website)

Why We Like It:
Biotech stocks helped lead the market higher on Thursday. The BTK index rose 2.5% and closed at a new multi-year high. Shares of AMGN have been lagging the sector but appear to have turned the corner over the last couple of weeks. The stock has been in a downtrend since the January peak and is due for a bounce. We're suggesting call positions now. Our target is the $62.40-62.50 range, which is very close to the 38.2% Fibonacci retracement of the January-April decline. It is somewhat aggressive buying a stock that has shown so much relative weakness over the past several weeks. We'll try and reduce our risk with a tight stop loss at $55.74. If we had more time we would suggest a stop loss under the recent lows near $55.00. We do not want to hold over the earnings report so we plan to exit at the closing bell on April 23rd if AMGN hasn't hit our target by then.

Suggested Options:
We are suggesting the May calls. It is up to you, the individual trader, to decide which month and which strike price best suits your trading style and risk level for all of our suggested trading candidates.

BUY CALL MAY 55.00 YAA-EK open interest=25132 current ask $4.30
BUY CALL MAY 57.50 YAA-EY open interest=12909 current ask $2.65
BUY CALL MAY 60.00 YAA-EL open interest=29241 current ask $1.50

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Picked on April 12 at $ 57.64
Change since picked: + 0.00
Earnings Date 04/23/07 (confirmed)
Average Daily Volume = 16.6 million

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Boeing - BA - close: 90.85 change: +0.88 stop: 89.35

Company Description:
Boeing is the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined. Additionally, Boeing designs and manufactures rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems. (source: company press release or website)

Why We Like It:
We are going to try again with BA as a bullish call candidate. We had the stock on the newsletter several days ago but shares never broke out and never hit our trigger. We're trying again but we have a short time frame. We do not want to hold over the April 25th earnings report. Thus we plan to exit at the closing bell on April 24th unless BA hit our target first. We'll wait for a breakout over resistance at the $92.00 level. Our trigger to buy calls will be $92.35. If triggered our target is the $97.50-100.00 range. More aggressive traders might want to consider jumping the gun if BA can traded over short-term resistance near $91.00.

Suggested Options:
We are suggesting the May calls. Our suggested trigger to buy calls is at $92.35.

BUY CALL MAY 90.00 BA-ER open interest= 9990 current ask $3.10
BUY CALL MAY 95.00 BA-ES open interest=10603 current ask $0.95

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 4.1 million

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Seacor - CKH - cls: 100.15 chg: +1.09 stop: 96.49

Company Description:
SEACOR is a global provider of marine support and transportation service, primarily to the energy and chemical industries. SEACOR and its subsidiaries provide customers with a full suite of marine-related services including offshore services, U.S. coastwise shipping, inland river services, helicopter services, environmental services, and offshore and harbor towing services. (source: company press release or website)

Why We Like It:
The consolidation in CKH appears to be ending as shares breakout from its trading range and through round-number resistance at the $100 level. The longer-term trend is bullish with a steady pattern of higher lows. Plus, the P&F chart has a compelling pattern for bullish positions. Yet we want to caution traders that this is probably an aggressive entry point with clear overhead resistance in the $102.50-103.25 range. It would not surprise us to see CKH fail on its first try to breakout past $103. We are suggesting call positions with CKH above $100. Our target is the $107.00-110.00 range. The P&F chart points to a $115 target. We do not want to hold over the late April or early May earnings report.

Suggested Options:
We are suggesting the May calls. The low option volume might raise the difficulty level of this trade.

BUY CALL MAY 95.00 CKH-ES open interest= 2 current ask $6.80
BUY CALL MAY 100.0 CHK-ET open interest= 0 current ask $3.50

Picked on April 12 at $100.15
Change since picked: + 0.00
Earnings Date 04/30/07 (unconfirmed)
Average Daily Volume = 227 thousand

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Joy Global - JOYG - cls: 46.48 chg: +1.62 stop: 43.89

Company Description:
Joy Global Inc. is a worldwide leader in manufacturing, servicing and distributing equipment for surface mining through P&H Mining Equipment and underground mining through Joy Mining Machinery. (source: company press release or website)

Why We Like It:
Positive comments from a Lehman Brothers analyst helped JOYG produce a strong 3.6% rally today. An AP article discussed his expectation that JOYG's business was doing well globally. The analyst has a $65 price target. The Point & Figure chart, which has a very tempting buy signal following a bounce from support, points to a $57 target. We see the rebound from $44-45 as a new entry point to buy calls. If you don't want to chase it here then look for a dip near $45 as another entry point. There is potential resistance near $47.00 at the bottom of its February gap down. However, we are suggesting two targets. Our conservative target is $49.85-50.00. Our aggressive target is the $52.25-55.00 range.

Suggested Options:
We are suggesting the May calls.

BUY CALL MAY 45.00 JQY-EI open interest=4728 current ask $3.10
BUY CALL MAY 50.00 JQY-EJ open interest=1455 current ask $0.95

Picked on April 12 at $ 46.48
Change since picked: + 0.00
Earnings Date 05/30/07 (unconfirmed)
Average Daily Volume = 2.5 million
 

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