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NUE None None
UNP    

New Calls

Nucor - NUE - close: 59.80 change: +1.87 stop: 56.75

Company Description:
Nucor and affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. (source: company press release or website)

Why We Like It:
NUE has rebounded sharply from its November lows and now the stock is challenging resistance near $60.00 and its 200-dma. Traders recently bought the dip near $57 and its 50-dma. We are suggesting that readers buy calls at $60.15. If triggered our target is the $64.90-65.00 range. More conservative traders might want to wait for NUE to clear last week's high near $60.65. The P&F chart is still bearish but a rally over $61 would change that.

Suggested Options:
We are suggesting the January calls. Our suggested trigger is at $60.15.

BUY CALL JAN 60.00 NUE-AL open interest=9368 current ask $3.40
BUY CALL JAN 62.50 NUE-AZ open interest=7306 current ask $2.30
BUY CALL JAN 65.00 NUE-AM open interest=10850 current ask $1.50

Picked on December xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume = 4.6 million

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Union Pacific - UNP - close: 129.30 change: +2.56 stop: 123.99

Company Description:
Union Pacific Corporation owns one of Americas leading transportation companies. Its principal operating company, Union Pacific Railroad, links 23 states in the western two-thirds of the country and serves the fastest-growing U.S. population centers. (source: company press release or website)

Why We Like It:
The DJUSRR railroad index is breaking out from its six-week bearish trend and above short-term resistance near 480. If the sector continues to rally we believe that UNP will be a leader in the group. The stock is already trading near all-time highs and is challenging resistance near $130.00. We're suggesting a trigger to buy calls at $130.50. More nimble traders may want to consider buying a dip near $128. If triggered at $130.50 our initial target is the $139.00-140.00 range. The P&F chart is already bullish with a $138 target.

Suggested Options:
We are suggesting the January calls. Our suggested trigger to open positions is at $130.50.

BUY CALL JAN 130 UNP-AF open interest=4145 current ask $5.30
BUY CALL JAN 135 UNP-AG open interest= 773 current ask $3.10
BUY CALL JAN 140 UNP-AH open interest=1999 current ask $1.55

Picked on December xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume = 2.3 million
 

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