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New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
CME None None
HES    
MCK    
TEX    
WYNN    

New Calls

Chicago Merc.Exc. - CME - cls: 551.49 chg: +1.86 stop: 544.75

Company Description:
CME is the world's largest and most diverse financial exchange. As an international marketplace, CME brings together buyers and sellers on the CME Globex electronic trading platform and on its trading floors. CME offers futures and options on futures in these product areas: interest rates, stock indexes, foreign exchange, agricultural commodities, energy, and alternative investment products such as weather, real estate and economic derivatives. (source: company press release or website)

Why We Like It:
The consolidation in CME over the last several days has left the stock poised to breakout over its trendline of resistance from the last three months. We are labeling this as a high-risk play for several reasons. First and foremost is the stock. CME can be a very volatile stock. The big swings are great if you catch one but they can be fatal if the stock swings against us. Second, is the time frame. CME is due to report earnings on April 24th before the market's open. That means we need to exit at the closing bell on Monday, April 23rd if CME doesn't hit our target. We want to catch a breakout so we're suggesting a trigger to buy calls at $557.50. If triggered our short-term target is $574.00-575.00. If we had more time we could aim for the highs. We'll start the play with our stop under the recent low. Remember, this is a high-risk play and we don't have a lot of time but if the market moves higher then CME could really run. One of the biggest challenges for the bulls would occur if investors suddenly decided to wait and see ahead of CME's earnings report and the stock just bounced around sideways.

Suggested Options:
We are suggesting the May calls. Our suggested trigger to buy calls is at $557.50.

BUY CALL MAY 550 CNM-QJ open interest=242 current ask $21.00
BUY CALL MAY 560 CNM-QZ open interest=184 current ask $16.00
BUY CALL MAY 570 CNM-QU open interest=145 current ask $12.00

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/24/07 (confirmed)
Average Daily Volume = 733 thousand

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HESS Corp. - HES - cls: 57.87 chg: +0.25 stop: 54.75

Company Description:
Hess Corporation, with headquarters in New York, is a global integrated energy company engaged in the exploration for and the production, purchase, transportation and sale of crude oil and natural gas, as well as the production and sale of refined petroleum products. (source: company press release or website)

Why We Like It:
We remain bullish on the oil stocks. HES is trying to breakout to new all-time highs. We are suggesting call positions in the $56.00-59.00 range. There is potential round-number, psychological resistance near $60.00 but our target is the $62.00-63.00 range. We do not want to hold over HES' earnings report coming up on April 25th before the market open. That means we plan to exit on the 24th at the closing bell.

Suggested Options:
We are suggesting the May calls.

BUY CALL MAY 55.00 IGG-EK open interest=4264 current ask $4.10
BUY CALL MAY 60.00 IGG-EL open interest=2036 current ask $1.30

Picked on April 15 at $ 57.87
Change since picked: + 0.00
Earnings Date 04/25/07 (confirmed)
Average Daily Volume = 3.0 million

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McKesson Corp. - MCK - cls: 59.57 chg: +0.56 stop: 57.99

Company Description:
McKesson Corporation is a Fortune 16 healthcare services and information technology company dedicated to helping its customers deliver high-quality healthcare by reducing costs, streamlining processes and improving the quality and safety of patient care. (source: company press release or website)

Why We Like It:
Biotech and drugs stocks have been market leaders for days. Yet shares of MCK have been stuck in a trading range for the last few weeks. Friday's bullish breakout in MCK could be the start of something bigger as shares try and catch up to their peers. Aggressive traders may want to open positions now. We see potential round-number resistance at $60.00. Therefore we are suggesting a trigger to buy calls at $60.15. If triggered at $60.15 our target will be the $64.00-65.00 range.

Suggested Options:
If triggered at $60.15 we would suggest the May calls.

BUY CALL MAY 55.00 MCK-EK open interest= 819 current ask $5.20
BUY CALL MAY 57.50 MCK-EY open interest=1347 current ask $3.10
BUY CALL MAY 60.00 MCK-EL open interest=2079 current ask $1.45

Picked on April xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/07/07 (unconfirmed)
Average Daily Volume = 1.7 million

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TEREX - TEX - close: 73.95 chg: +0.41 stop: 69.89

Company Description:
Terex Corporation is a diversified global manufacturer with 2006 sales of approximately $7.6 billion. Terex operates in five business segments: Terex Aerial Work Platforms, Terex Construction, Terex Cranes, Terex Materials Processing & Mining, and Terex Roadbuilding, Utility Products and Other. (source: company press release or website)

Why We Like It:
TEX is hitting new highs again. The stock has shown a lot of relative strength. Instead of consolidating lower over the past several weeks the stock merely churned sideways above the $70.00 level. Now the latest bounce has TEX edging higher past resistance at the top of its trading range. We are suggesting call positions now with TEX above the $73.00 level. However, traders can choose to wait for more confirmation of a breakout and look for a rise past $74.25 or look for another dip near support in the $70 region. We do not want to hold over the April 25th earnings report. Our target is the $79-80.00 range.

Suggested Options:
We are suggesting the May calls.

BUY CALL MAY 70.00 TEX-EN open interest= 137 current ask $6.30
BUY CALL MAY 75.00 TEX-EO open interest=1061 current ask $3.40
BUY CALL MAY 80.00 TEX-EP open interest= 105 current ask $1.55

Picked on April 15 at $ 73.95
Change since picked: + 0.00
Earnings Date 04/25/07 (unconfirmed)
Average Daily Volume = 1.4 million

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Wynn Resorts - WYNN - cls: 102.44 chg: +2.27 stop: 97.49

Company Description:
Wynn Resorts, Limited is traded on the Nasdaq National Market under the ticker symbol WYNN and is part of the NASDAQ-100 Index. On September 6, 2006, Wynn Macau, a destination casino resort in the Macau Special Administrative Region of the People's Republic of China, opened, featuring 600 deluxe hotel rooms and suites, approximately 220 table games and 380 slot machines in approximately 100,000 square feet of casino gaming space, seven restaurants, approximately 26,000 square feet of retail space, a spa, a salon, entertainment lounges and meeting facilities. Additionally, the Company owns and operates Wynn Las Vegas, a luxury hotel and destination casino resort located on the Las Vegas Strip. Wynn Las Vegas features 2,716 luxurious guest rooms and suites; an approximately 111,000 square foot casino; 22 food and beverage outlets; an on-site 18-hole golf course; approximately 223,000 square feet of meeting space; an on-site Ferrari and Maserati dealership; and approximately 76,000 square feet of retail space. (source: company press release or website)

Why We Like It:
WYNN is on the move again. The stock has a bullish pattern of higher lows. Investors have been buying the stock again since its pull back toward $90 in early March. The current rally looks like a bullish entry point given the breakout over the 50-dma and the recent highs. We suspect that the stock will march toward the February highs. However, we only have a limited time frame and plan to exit ahead of the early May earnings report. Therefore we are setting our target in the $108.00-110.00 range. More conservative traders may want to exit early near the late February highs around $106.60.

Suggested Options:
We are suggesting the May calls.

BUY CALL MAY 100 UWY-ET open interest=986 current ask $6.10
BUY CALL MAY 105 UWY-EA open interest=358 current ask $3.50
BUY CALL MAY 110 UWY-EB open interest=990 current ask $1.75

Picked on April 15 at $102.44
Change since picked: + 0.00
Earnings Date 05/05/07 (unconfirmed)
Average Daily Volume = 1.4 million
 

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