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New Option Plays

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Call Options Plays
Put Options Plays
Strangle Options Plays
None CP None
  ESS  
  JBHT  
  REG  

New Calls

None today.
 

New Puts

Canadian Pacific - CP - cls: 64.29 change: +0.69 stop: 66.26

Company Description:
Canadian Pacific, through the ingenuity of its employees located across Canada and in the United States, remains committed to being the safest, most fluid railway in North America. (source: company press release or website)

Why We Like It:
Transportation stocks have been trending lower. The sky-high price of crude oil really hurts their bottom line with rising fuel costs. The railroads have been doing a lot better than the airlines and the trucking companies. Yet the railroad group could be poised for more losses. Shares of CP have broken down under significant support near $67.50, 65.00 and its 200-dma in the last couple of weeks. We suspect that CP could drop toward its next level of discernible support near $57.00. The Point & Figure chart is bearish and points to a $51 target. We're suggesting a trigger to buy puts at $62.85, which would be a new relative low. If triggered our target is the $57.50-57.00 range.

Suggested Options:
We are suggesting the December puts. We'd like to add January puts but they're not available yet. Our suggested trigger to open positions is at $62.85.

BUY PUT DEC 65.00 CP-XM open interest=484 current ask $3.00
BUY PUT DEC 60.00 CP-XL open interest=163 current ask $1.10

Picked on November xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/30/08 (unconfirmed)
Average Daily Volume = 553 thousand

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ESSEX Property - ESS - close: 104.17 change: -2.63 stop: 107.31

Company Description:
Essex Property Trust, Inc., located in Palo Alto, California and traded on the New York Stock Exchange (ESS), is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast communities. Essex currently has ownership interests in 137 multifamily properties (28,208 units), and has 1,108 units in various stages of development. (source: company press release or website)

Why We Like It:
ESS has already seen a pretty significant sell-off following its October 31st earnings report. Shares dropped from the mid $120s to test support at the $102 mark. The stock produced a sharp oversold bounce but the rebound failed under $110. We suspect there is more weakness ahead, especially with the entire sector in a bearish downtrend. ESS can be a volatile stock. It's why we picked it. Any breakdown should be pretty sharp but the volatility works both ways and makes it hard to place your stop loss. We are suggesting a trigger to buy puts at $101.75, which would be a breakdown under support at $102. We'll suggest a stop above Friday's high at $107.31. If triggered our target is support in the $94.00-93.00 range. The P&F chart is much more bearish with a $78 target. FYI: Do not be surprised if ESS produces an initial bounce from the $100 mark.

Suggested Options:
We are suggesting the December or January puts. Our suggested trigger is at $101.75. It is up to the individual trader to decide which month and which strike price best suits your trading style and risk.

BUY PUT DEC 105 ESS-XA open interest= 0 current ask $5.20
BUY PUT DEC 100 ESS-XT open interest= 1 current ask $3.10

BUY PUT JAN 100 ESS-MT open interest=13 current ask $4.50

Picked on November xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/31/07 (confirmed)
Average Daily Volume = 272 thousand

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J.B.Hunt - JBHT - close: 25.78 change: -0.69 stop: 27.05

Company Description:
J.B. Hunt Transport Services, Inc. focuses on providing safe and reliable transportation services to a diverse group of customers throughout the continental United States, Canada and Mexico. Utilizing an integrated, multimodal approach, we provide capacity-oriented solutions centered on delivering customer value and industry-leading service. (source: company press release or website)

Why We Like It:
Both Fedex (FDX) and Yellow Roadway (YRCW) have issued negative comments about the impact of rising fuel costs and a slow down in business for the trucking industry. JBHT might be the next company to issue a warning. JBHT fell 2.6% on Friday's negative trucking news but the stock held support near $25.40-25.30. We are suggesting a trigger to buy puts at $24.95. More aggressive traders may want to jump in early at $25.25. If we are triggered at $24.99 our target is the $22.50-22.00 range. If JBHT trades under $25.00 it will produce a new triple-bottom breakdown sell signal on the P&F chart.

Suggested Options:
We are suggesting the December or January puts. Our suggested trigger is at $24.95. It is up to the individual trader to decide which month and which strike price best suits your trading style and risk.

BUY PUT DEC 25.00 JHQ-XE open interest=583 current ask $1.10
BUY PUT DEC 22.50 JHQ-XX open interest= 60 current ask $0.50

BUY PUT JAN 25.00 JHQ-ME open interest=5266 current ask $1.55
BUY PUT JAN 20.00 JHQ-MD open interest= 421 current ask $0.40

Picked on November xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/29/08 (unconfirmed)
Average Daily Volume = 1.8 million

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Regency Centers - REG - cls: 67.56 chg: -1.50 stop: 72.01

Company Description:
Regency is the leading national owner, operator, and developer of grocery-anchored and community shopping centers. At September 30, 2007, the Company owned 447 retail properties, including those held in co-investment partnerships. Including tenant-owned square footage, the portfolio encompassed 59.0 million square feet located in top markets throughout the United States. (source: company press release or website)

Why We Like It:
REG is another bearish candidate in the REIT sector. Both daily and weekly technical indicators have turned bearish. Plus, the Point & Figure chart has produced a new sell signal with a $61 target. We are suggesting put positions now or on a failed rally under $70.00. More conservative traders may want to use a tighter stop near $70. Our suggested stop is above resistance near $72.00. Our target is the $62.50-62.00 range near the August 2007 lows.

Suggested Options:
We are suggesting the December or January puts. It is up to the individual trader to decide which month and which strike price best suits your trading style and risk.

BUY PUT DEC 70.00 REG-XN open interest= 0 current ask $4.40
BUY PUT DEC 65.00 REG-XM open interest= 0 current ask $1.85

BUY PUT JAN 70.00 REG-MN open interest=17 current ask $5.10
BUY PUT JAN 65.00 REG-MM open interest=22 current ask $2.55

Picked on November 18 at $ 67.56
Change since picked: + 0.00
Earnings Date 10/27/07 (unconfirmed)
Average Daily Volume = 570 thousand
 

New Strangles

None today.
 

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