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Call Options Plays
Put Options Plays
Strangle Options Plays
GWW None None
JCI    
MNST    
SRE    
USU    

New Calls

W.W.Grainger - GWW - close: 84.78 chg: +1.17 stop: 83.24

Company Description:
W.W. Grainger, Inc., with 2006 sales of $5.9 billion, is a leading broad line supplier of facilities maintenance products serving businesses and institutions in Canada, China, Mexico and the United States. Through a highly integrated network including nearly 600 branches, 18 distribution centers and multiple Web sites, Grainger's employees help customers get the job done, saving them time and money by having the right products to keep their facilities running.

(source: company press release or website)

Why We Like It:
GWW has spent the last three weeks consolidating under resistance at the $85.00 level. If it can breakout over resistance it should be a straight shot toward the $90 area. We're suggesting a trigger to buy calls at $85.25. If triggered our target will be the $89.75-90.00 range. The P&F chart currently points at an $88 target.

Suggested Options:
We are suggesting the June or July calls. June calls expire in about four weeks.

BUY CALL JUN 80.00 GWW-FP open interest= 9 current ask $5.60
BUY CALL JUN 85.00 GWW-FQ open interest=169 current ask $2.10
BUY CALL JUN 90.00 GWW-FR open interest=206 current ask $0.46

BUY CALL JUL 85.00 GWW-GQ open interest=301 current ask $3.40
BUY CALL JUL 90.00 GWW-GR open interest= 63 current ask $1.35

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/16/07 (unconfirmed)
Average Daily Volume = 507 thousand

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Johnson Controls - JCI - cls: 110.60 chg: +1.60 stop: 107.45

Company Description:
Johnson Controls is a global leader in automotive interior experience, building efficiency and power solutions. The company provides innovative automobile interiors that help make driving more comfortable, safe and enjoyable. For buildings, it offers products and services that optimize energy use and improve comfort and security. Johnson Controls also provides batteries for automobiles and hybrid electric vehicles, along with systems engineering and service expertise. (source: company press release or website)

Why We Like It:
This is a pure momentum play. Some of the major market averages are hitting or nearing new all-time highs. JCI is enjoying the party with a string of new all-time highs as well. There is no doubt about it that JCI is overbought and due for a correction but until the trend changes we'll ride the wave. However, we'll try and limit our risk with a relatively tight stop loss at $107.45. Our short-term target is the $114.50-115.00 range.

Suggested Options:
We are suggesting the June or July calls. June options expire in about four weeks.

BUY CALL JUN 105 JCI-FA open interest=361 current ask $6.60
BUY CALL JUN 110 JCI-FB open interest=475 current ask $3.00
BUY CALL JUN 115 JCI-FC open interest=191 current ask $1.00

BUY CALL JUL 110 JCI-GB open interest=1161 current ask $5.00
BUY CALL JUL 115 JCI-GC open interest= 204 current ask $2.75

Picked on May 20 at $110.60
Change since picked: + 0.00
Earnings Date 07/20/07 (unconfirmed)
Average Daily Volume = 1.0 million

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Monster Worldwide - MNST - cls: 50.08 chg: +1.72 stop: 44.99

Company Description:
Monster Worldwide, Inc., parent company of Monster, the premier global online employment solution for more than a decade, strives to bring people together to advance their lives. With a local presence in key markets in North America, Europe, and Asia, Monster works for everyone by connecting employers with quality job seekers at all levels and by providing personalized career advice to consumers globally. Through online media sites and services, Monster delivers vast, highly targeted audiences to advertisers. (source: company press release or website)

Why We Like It:
With the market experiencing some merger mania right now investors are trying to pile into stocks that might be the next takeover play. MNST is now rumored to be an acquisition target from any number of significant Internet companies. The stock does look a little overbought here and we would prefer to buy a dip near $48.00 but we may not have that luxury. More conservative traders may want to see more strength to confirm the breakout over resistance at $50.00 before initiating positions. This is an aggressive, higher-risk, speculative play and we are using a wide stop loss. Our target is the $54.75-55.00 range.

Suggested Options:
We are suggesting the June options. We don't see any Julys yet available.

BUY CALL JUN 45.00 BSQ-FI open interest=16064 current ask $6.40
BUY CALL JUN 50.00 BSQ-FJ open interest=13863 current ask $3.40
BUY CALL JUN 55.00 BSQ-FK open interest= 7793 current ask $1.80

Picked on May 20 at $ 50.08
Change since picked: + 0.00
Earnings Date 07/27/07 (unconfirmed)
Average Daily Volume = 3.6 million

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Sempra Energy - SRE - cls: 64.05 chg: +0.81 stop: 61.45

Company Description:
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2006 revenues of nearly $12 billion. The Sempra Energy companies' 14,000 employees serve more than 29 million consumers worldwide. (source: company press release or website)

Why We Like It:
We haven't played any utilities in a while so we're going to jump on board with SRE, a natural gas/electric utility company. The stock has a very steady trend and traders just started buying the dip a few days ago. Technical indicators are improving again. We'll limit our risk with a stop loss under the May low. We're suggesting call positions now. More conservative traders may want to wait for a more significant rise past the $64.00 level. Our target is the $68.00-70.00 range.

Suggested Options:
We are suggesting the July calls.

BUY CALL JUL 60.00 SRE-GL open interest= 507 current ask $4.80
BUY CALL JUL 65.00 SRE-GM open interest=1689 current ask $1.35

Picked on May 20 at $ 64.05
Change since picked: + 0.00
Earnings Date 08/01/07 (unconfirmed)
Average Daily Volume = 1.3 million

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USEC Inc. - USU - close: 23.56 chg: +0.95 stop: 21.99

Company Description:
USEC Inc., a global energy company, is a leading supplier of enriched uranium fuel for commercial nuclear power plants. (source: company press release or website)

Why We Like It:
The uranium-related mining stocks have been big winners this year. Rising oil and natural gas prices makes nuclear energy more and more attractive. We're also starting to hear about potential M&A in the group. On Friday EMU announced it was discussing a sale of the company. That could keep the fire lit under shares of USU as well. This is an aggressive, speculative play and readers should consider it higher-risk. We're suggesting call positions now. We'll try and limit our risk with a stop under $22.00. Traders might be able to get away with a stop near $22.35. Our target is the $27.00-30.00 range. The P&F chart points to a $28 target.

Suggested Options:
We are suggesting the July calls.

BUY CALL JUL 22.50 USU-GX open interest=1618 current ask $2.55
BUY CALL JUL 25.00 USU-GE open interest=1898 current ask $1.40

Picked on May 20 at $ 23.56
Change since picked: + 0.00
Earnings Date 05/03/07 (confirmed)
Average Daily Volume = 1.8 million
 

New Puts

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New Strangles

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