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AMGN None None
BIIB    
KSS    

New Calls

Amgen Inc. - AMGN - cls: 56.84 change: +1.45 stop: 54.90

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:
The BTK biotech index has broken out to new highs, which is pretty amazing since AMGN, one of its largest components, has been under performing the group. We suspect that AMGN could try and catch up to its peers. The stock has been consolidating sideways the last few weeks and currently looks poised to breakout over resistance in the $57.75-58.00 range. We're suggesting a trigger to buy calls on AMGN at $58.01. If triggered our target is the $64.00-65.00 range, which might be a little too aggressive given our time frame. AMGN is due to report earnings around October 25th and we don't want to hold over the report. Furthermore chart readers will notice that AMGN has likely resistance at its 200-dma near around $59.50 and then again near $60.00. It's also worth noting that AMGN's P&F chart is still bearish and it will take a breakout over $60.00 to change it back into a bullish pattern.

Suggested Options:
October options expire in two weeks so we're suggesting the November calls. Our suggested trigger to open positions is at $58.01.

BUY CALL NOV 55.00 YAA-KK open interest= 5053 current ask $3.45
BUY CALL NOV 57.50 YAA-KY open interest= 1958 current ask $1.96
BUY CALL NOV 60.00 YAA-KL open interest= 5361 current ask $0.93

Picked on October xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/25/07 (unconfirmed)
Average Daily Volume = 11.7 million

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Biogen Idec - BIIB - cls: 67.63 chg: +1.75 stop: 64.95

Company Description:
Biogen Idec creates new standards of care in therapeutic areas with high unmet medical needs. Founded in 1978, Biogen Idec is a global leader in the discovery, development, manufacturing, and commercialization of innovative therapies. (source: company press release or website)

Why We Like It:
Another biotech that looks attractive is BIIB. The sector is breaking out higher and helping lead the way is BIIB, which has been a consistent performer. The stock appears to be launching into a new leg upward after testing support near $65. We're suggesting call positions now with a stop loss under support. There is potential resistance near $70.00 but we're going to aim for the $72.40-72.50 range. The P&F chart points to an $86 target. Part of our challenge is time. We do not want to hold over the October 23rd earnings report.

Suggested Options:
We are suggesting the November calls.

BUY CALL NOV 65.00 IHD-KM open interest=285 current ask $5.10
BUY CALL NOV 70.00 IHD-KN open interest=739 current ask $2.50

Picked on October 07 at $ 67.63
Change since picked: + 0.00
Earnings Date 10/23/07 (confirmed)
Average Daily Volume = 4.4 million

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Kohl's - KSS - close: 61.17 change: +2.24 stop: 57.90

Company Description:
Based in Menomonee Falls, Wis., Kohl's is a family-focused, value-oriented specialty department store offering moderately priced, exclusive and national brand apparel, shoes, accessories, beauty and home products in an exciting shopping environment. By the end of November, Kohl's will operate 929 stores in 47 states.
(source: company press release or website)

Why We Like It:
Retail stocks have rebounded sharply. It appears that investors are choosing to ignore all the warnings about a dismal holiday shopping season ahead of us. Now, with the current October bounce, shares of KSS look poised to breakout from an inverse or bullish version of a head-and-shoulders pattern. We're suggesting a trigger to buy calls at $62.01. More aggressive traders might want to jump in early right now. If we are triggered at $62.01 our target is the $67.00-68.00 range. Keep a wary eye on the 100-dma as potential overhead resistance. We do not want to hold over the November earnings report.

Suggested Options:
We are suggesting the November calls. Our suggested trigger to open positions is at $62.01.

BUY CALL NOV 60.00 KSS-KL open interest=6254 current ask $4.10
BUY CALL NOV 65.00 KSS-KM open interest=1888 current ask $1.80

Picked on October xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/15/07 (unconfirmed)
Average Daily Volume = 5.9 million
 

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