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Call Options Plays
Put Options Plays
Strangle Options Plays
None AVB None
  BAC  
  ESI  
  EWZ  
  FTI  

New Calls

None today.
 

New Puts

Play Editor's Note: We are also keeping an eye on MHO, MON, PX and TNP as potential bearish candidates.
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Avalonbay - AVB - cls: 109.77 change: -4.62 stop: 115.26

Company Description:
As of March 31, 2007, AvalonBay Communities, Inc., headquartered in Alexandria, Virginia, owned or held an ownership interest in 171 apartment communities containing 49,402 apartment homes in ten states and the District of Columbia, of which 16 communities were under construction and six communities were under reconstruction. AvalonBay is in the business of developing, redeveloping, acquiring, and managing apartment communities in high barrier-to-entry markets of the United States. (source: company press release or website)

Why We Like It:
The REIT stocks look vulnerable to more profit taking. AVB's recent oversold bounce has failed twice near the $115 level. We believe the next move will be a decline toward $100. We're suggesting puts with a stop loss at $115.26 (on AVB) and a target in the $101.00-100.00 range.

Suggested Options:
We are suggesting the September puts.

BUY PUT SEP 110 AVB-UB open interest=41 current ask $6.20
BUY PUT SEP 105 AVB-UA open interest=32 current ask $4.00
BUY PUT SEP 100 AVB-UT open interest= 1 current ask $2.40

Picked on August 05 at $109.77
Change since picked: + 0.00
Earnings Date 07/31/07 (confirmed)
Average Daily Volume = 1.0 million

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Bank of Amer. - BAC - cls: 47.00 chg: -0.78 stop: 48.51

Company Description:
Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial products and services. (source: company press release or website)

Why We Like It:
Financial stocks are leading the market lower and BAC is no exception. The stock has a bearish trend of lower lows and lower highs. Shares have spent several days trying to find a bottom near $47.00 but the bounces have failed to find traction past $48.00. Aggressive traders may want to buy puts now after the Thursday and Friday failed rallies. We are suggesting readers wait for a new relative low. Our suggested entry point to buy puts is at $46.75. If triggered our target is the $42.00-40.00 range. The P&F chart currently points to a $42 target. FYI: BAC is not a fast moving stock and we would expect an initial bounce near $46 and its 200-week moving average. It could easily take a few weeks for BAC to hit our target.

Suggested Options:
We are suggesting the September puts. Our trigger is at $46.75.

BUY PUT SEP 50.00 BAC-UJ open interest= 1866 current ask $4.00
BUY PUT SEP 47.50 BAC-UW open interest=21630 current ask $2.35
BUY PUT SEP 45.00 BAC-UI open interest=17786 current ask $1.40

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/19/07 (confirmed)
Average Daily Volume = 22.7 million

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ITT Educ. - ESI - cls: 102.22 change: -4.13 stop: 107.51

Company Description:
Based in Carmel, Indiana, a suburb of Indianapolis, ESI operates 91 ITT Technical Institutes in 34 states with approximately 49,000 students enrolled. (source: company press release or website)

Why We Like It:
ESI's latest earnings report looked pretty good. The company beat estimates and raised guidance. Yet the stock sold off sharply on the news breakdown down under multiple levels of support. The oversold bounce never got very far and now after several days of trading sideways ESI is breaking down again on big volume. Friday's move looks like a new entry point to buy puts. However, the $100 level might be short-term support so we would expect some sort of bounce. It might pay off to wait for the bounce (from $100) to roll over before considering new positions. Our target is the $92.00-90.00 range. The P&F chart is bearish with an $86 target.

Suggested Options:
We are suggesting the September puts.

BUY PUT SEP 105 ESI-UA open interest=208 current ask $6.30
BUY PUT SEP 100 ESI-UT open interest= 17 current ask $3.80
BUY PUT SEP 95 ESI-US open interest= 20 current ask $2.15

Picked on August 05 at $102.22
Change since picked: + 0.00
Earnings Date 07/26/07 (confirmed)
Average Daily Volume = 491 thousand

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MSCI Brazil iShares - EWZ - close: 60.90 chg: -3.29 stop: 64.15

Company Description:
The EWZ ishares is an Exchange Traded Fund that is focused on tracking the major Brazilian stock index (MSCI).

Why We Like It:
This is purely a technical play. The EWZ has broken its bullish trend and technical indicators are turning lower again suggesting another leg down. Nimble traders may want to buy puts now. We're suggesting a trigger to open positions at $59.90. If triggered our target will be the $55.25-55.00 range. FYI: We do have a wide stop loss. More conservative traders may want to use a tighter stop.

Suggested Options:
We are suggesting the September puts. Our trigger is at $59.90.

BUY PUT SEP 65.00 EWZ-UM open interest=14519 current ask $7.00
BUY PUT SEP 60.00 EWZ-UL open interest= 8452 current ask $4.70
BUY PUT SEP 55.00 EWZ-UK open interest=42003 current ask $2.25

Picked on August xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/27/07 (unconfirmed)
Average Daily Volume = 9.7 million

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FMC Tech. - FTI - cls: 88.22 change: -2.19 stop: 92.51

Company Description:
FMC Technologies, Inc. is a leading global provider of technology solutions for the energy industry and other industrial markets. (source: company press release or website)

Why We Like It:
We believe that oil will probably see a sharp correction in the next several weeks and this will compound the weakness we are already seeing in the oil and oil service stocks. FTI has broken its bullish trend and volume is soaring on the declines. Friday's failed rally at the $92.00 level, near its 10-dma, and the close back under $90.00 is a new bearish entry point to buy puts. Our target is the $82.00-80.00 range. We may have to adjust our target to account for the rising 50-dma. Currently the P&F chart points to an $83 target. FYI: FTI is due to split 2-for-1 on September 4th.

Suggested Options:
We are suggesting the September puts. October strikes have more open interest.

BUY PUT SEP 90.00 FTI-UR open interest= 11 current ask $5.60
BUY PUT SEP 85.00 FTI-UQ open interest= 55 current ask $3.30

Picked on August 05 at $ 88.22
Change since picked: + 0.00
Earnings Date 07/30/07 (confirmed)
Average Daily Volume = 677 thousand
 

New Strangles

None today.
 

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