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New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
BA None None
BNI    
FDX    
LLL    
SNP    
TM    
X    

New Calls

Boeing Co - BA - cls: 100.78 change: 0.66 stop: 98.95

Company Description:
Boeing is the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined. (source: company press release or website)

Why We Like It:
BA has gotten a lot of press from delivering its first dreamliner aircraft. The excitement has fueled a big rebound over the past two weeks. We suspect there is more upside to come. The stock has spent the last couple of days digesting its gains under its old highs in early June 2007. We're suggesting a trigger to buy calls on a new high. Our suggested trigger is at $101.55. If triggered our target is the $109.00-110.00 range. A move over $102 would produce a new triple-top breakout buy signal on the P&F chart. We don't have much time and plan to exit ahead of the late July earnings report.

Suggested Options:
Our trigger to buy calls is at $101.55. We're suggesting the August strikes.

BUY CALL AUG 100 BA-HT open interest=14434 current ask $3.40
BUY CALL AUG 105 BA-HA open interest= 8362 current ask $1.40

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

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Burlington Northern - BNI - cls: 88.17 chg: 1.04 stop: 83.99

Company Description:
Burlington Northern Santa Fe Corporation's subsidiary, BNSF Railway Company, operates one of the largest North American rail networks, with about 32,000 route miles in 28 states and two Canadian provinces. BNSF Railway Company is among the world's top transporters of intermodal traffic, moves more grain than any other American railroad, carries the components of many of the products we depend on daily, and hauls enough low-sulfur coal to generate about ten percent of the electricity produced in the United States. (source: company press release or website)

Why We Like It:
The railroad sector is breaking out over resistance, which is adding strength to the transportation sector. The consolidation in BNI appears to be ending. Technical indicators have reversed back into bullish signals. We are suggesting calls on BNI with the stock above $88.00. There is potential resistance at the 50-dma near $89.15 and again near the $90.00 level but if the major averages continue to hit new highs we suspect BNI will be able to push higher. The P&F chart is still bearish but we're aiming for the $94.00-95.00 range. This is somewhat aggressive given our time frame as we plan to exit ahead of the July 24th earnings report.

Suggested Options:
We are suggesting the August calls but plan to exit ahead of the late July earnings.

BUY CALL AUG 85.00 BNI-HQ open interest=1598 current ask $5.40
BUY CALL AUG 90.00 BNI-HR open interest=3140 current ask $2.60

Picked on July 12 at $ 88.17
Change since picked: 0.00
Earnings Date 07/24/07 (confirmed)
Average Daily Volume = 2.3 million

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FedEx - FDX - cls: 114.42 change: 0.90 stop: 111.85

Company Description:
FedEx provides access to a growing global marketplace through a network of supply chain, transportation, business and related information services. (source: company press release or website)

Why We Like It:
With the transportation sector rallying toward new highs shares of FDX look poised to catch up to its peers. The stock broke out over resistance four days ago when Barron's suggested FDX might be a takeover candidate. The stock spent the rest of this week digesting those gains and testing support at broken resistance. The current bounce from the $112 level looks like a new entry point to buy calls. There is some resistance near $117 but we are targeting a move into the $119.50-120.00 zone. The P&F chart is still bearish for now.

Suggested Options:
We are suggesting the August calls.

BUY CALL AUG 110 FDX-HB open interest= 696 current ask $6.70
BUY CALL AUG 115 FDX-HC open interest=3793 current ask $3.60
BUY CALL AUG 120 FDX-HD open interest=1162 current ask $1.60

Picked on July 12 at $114.42
Change since picked: 0.00
Earnings Date 09/20/07 (unconfirmed)
Average Daily Volume = 2.4 million

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L-3 Comm. - LLL - cls: 100.15 change: 1.60 stop: 97.45

Company Description:
Headquartered in New York City, L-3 Communications employs over 63,000 people worldwide and is a prime system contractor in aircraft modernization and maintenance, C(3)ISR (Command, Control, Communications, Intelligence, Surveillance and Reconnaissance) systems and government services. L-3 is also a leading provider of high technology products, systems and subsystems. The company reported 2006 sales of $12.5 billion. (source: company press release or website)

Why We Like It:
LLL has been a steady performer for the bulls although shares have spent the last five week consolidating sideways under resistance at the $100 mark. Today's widespread really helped push LLL through resistance and the stock rose 1.6% on strong volume. We're suggesting calls with LLL above $100. Our target is the $104.90-105.00 range. We would aim higher but we don't have a lot of time. We plan to exit ahead of the earnings report on July 26th. The P&F chart points to a $113 target.

Suggested Options:
We are suggesting the August calls but plan to exit ahead of the July earnings.

BUY CALL AUG 95.00 LLL-HS open interest= 45 current ask $6.60
BUY CALL AUG 100.0 LLL-HT open interest=690 current ask $3.10
BUY CALL AUG 105.0 LLL-HA open interest=580 current ask $1.05

Picked on July 12 at $100.15
Change since picked: 0.00
Earnings Date 07/26/07 (confirmed)
Average Daily Volume = 640 thousand

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China Petro - SNP - cls: 116.26 change: 1.77 stop: 112.35

Company Description:
Sinopec is an integrated energy and chemical company. The scope of its business mainly covers oil and gas exploration, development, production and marketing; oil refining; production and sales of petrochemicals, chemical fibers, chemical fertilizers and other chemical products; storage and pipeline transportation of crude oil and natural gas; import, export and import/export agency business of crude oil, natural gas, refined oil products, petrochemicals, chemicals, and other commodities and technologies; research, development and application of technology and information. It is Chinas largest producer and supplier of oil products (including gasoline, diesel and jet fuel, etc.) and major petrochemical products (including petrochemical intermediates, synthetic resin, synthetic fiber monomers and polymers, synthetic fiber and chemical fertilizer). It is also Chinas second largest crude oil producer. (source: company press release or website)

Why We Like It:
We are bullish on oil and energy stocks and the Chinese market continues to be red hot so SNP seems like a natural candidate for bullish positions. Shares have been consolidating with a bullish pattern of higher lows suggesting a new breakout higher is coming soon. We're suggesting a trigger to buy calls at $116.55, which isn't that far away. There is potential resistance at $120 but our target is the $124.00-125.00 range. The P&F chart is bullish with a $132 target. FYI: We would qualify this as somewhat aggressive. SNP is an ADR stock so it's prone to gap opens and the technical indicators are looking tired, which suggests the rally could fail at any moment.

Suggested Options:
Our suggested trigger to buy calls is at $116.55. We're suggesting the August calls.

BUY CALL AUG 115 SNP-HC open interest=319 current ask $5.60
BUY CALL AUG 120 SNP-HD open interest=273 current ask $3.30

Picked on July xx at $ xx.xx <-- see TRIGGER
Change since picked: 0.00
Earnings Date 08/27/07 (unconfirmed)
Average Daily Volume = 563 thousand

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Toyota Motor - TM - cls: 126.30 change: 0.63 stop: 123.99

Company Description:
Toyota Motor Corp. is an automotive giant with operations around the world.

Why We Like It:
It looks like the correction in TM is over and the stock is developing a new bullish channel higher. Traders bought the dip near support around the $125 level and its rising 200-dma. We're suggesting calls with TM above $125.00. We have two targets. Our conservative target is the $129.75-130.00 range. Our aggressive target is the $133.50-135.00 zone. We do not want to hold over the early August earnings report.

Suggested Options:
We are suggesting the August calls.

BUY CALL AUG 125 TM-HE open interest=130 current ask $4.30
BUY CALL AUG 130 TM-HF open interest=314 current ask $1.95

Picked on July 12 at $126.30
Change since picked: 0.00
Earnings Date 08/02/07 (unconfirmed)
Average Daily Volume = 557 thousand

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United States Steel - X - cls: 114.41 chg: 3.30 stop: 109.49

Company Description:
United States Steel Corporation headquartered in Pittsburgh, Pa., manufactures a wide variety of steel sheet, tubular and tin products; coke, and taconite pellets; and has a worldwide annual raw steel capability of 26.8 million net tons. (source: company press release or website)

Why We Like It:
Steel and metal stocks are making a comeback. Positive comments about the future of steel prices and the constant M&A in the market is reviving the rally. X spike to all-time highs a few weeks ago on rumors it was a takeover candidate. Now that shares are rebounding the technical indicators are improving. Aggressive traders may want to buy calls now. We want to see a new relative high first. We're suggesting a trigger to buy calls at $115.51. If triggered our target is the $124.00-125.00 range. More conservative traders may want to exit early near $120. We don't have much time. X is due to report earnings on July 24th. Given our time frame this should be considered a more aggressive play.

Suggested Options:
We're suggesting a trigger to buy calls at $115.51. We like the August strikes. (Note - check your symbols. Normally the AUG 120 call should be -HD but the CBOE has it as -HU)

BUY CALL AUG 110 X-HB open interest=774 current ask $8.50
BUY CALL AUG 115 X-HC open interest=553 current ask $5.90
BUY CALL AUG 120 X-HU open interest=727 current ask $3.90

Picked on July xx at $ xx.xx <-- see TRIGGER
Change since picked: 0.00
Earnings Date 07/24/07 (confirmed)
Average Daily Volume = 3.4 million
 

New Puts

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New Strangles

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