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FXI None None
HUM    

New Calls

iShares China 25 - FXI - cls: 154.39 chg: +4.92 stop: 149.45

Company Description:
The FXI is the iShares FTSE/Xinhau China 25 index. This is an exchange traded fund that seeks to mimic the performance of the FTSE/Xinhau China 25 index.

Why We Like It:
We like the FXI as a bullish candidate because the ETF is breaking out past its bearish trendline of lower highs. That breakout actually occurred today. Aggressive traders could start thinking about positions now or above $155. However, we see potential overhead resistance at its 200-dma (about $155.36), at its 50-dma (about $157.25), and at the $160-161 level. Therefore we are suggesting that readers buy calls when the FXI trades at $161.01. Obviously we're giving up six points but we'd rather be confident that the FXI is truly breaking out. If we are triggered at $161.01 our target is the $178.00-180.00 zone although we'll have to keep a wary eye on potential resistance at the 100-dma. FYI: Nimble traders may want to consider buying dips near $150-148 if you get the chance and use a stop loss under the recent lows (around $142-143).

Suggested Options:
We are suggesting the April calls. March strikes are available and would work but have less than four weeks left until expiration. Our suggested trigger is $161.01. These options will be higher in value when we're triggered.

BUY CALL APR 150 FFP-DT open interest= 96 current ask $13.50
BUY CALL APR 155 FFP-DY open interest= 690 current ask $10.60
BUY CALL APR 160 FFP-DD open interest=1695 current ask $ 8.30
BUY CALL APR 165 FFP-DI open interest= 60 current ask $ 6.40
BUY CALL APR 170 FVU-DN open interest= 336 current ask $ 4.90
BUY CALL APR 175 FVU-DS open interest= 88 current ask $ 3.50
BUY CALL APR 180 FVU-DX open interest= 77 current ask $ 2.55

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume = 7.8 million

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Humana Inc. - HUM - close: 71.88 change: +1.51 stop: 67.75

Company Description:
Humana Inc., headquartered in Louisville, Kentucky, is one of the nations largest publicly traded health and supplemental benefits companies, with approximately 11.5 million medical members. Humana is a full-service benefits solutions company, offering a wide array of health and supplemental benefit plans for employer groups, government programs and individuals. (source: company press release or website)

Why We Like It:
If you look at a weekly chart of HUM you can easily see the very long-term bullish trend. The stock appears to have just set a new higher low in that trend and arguably a bullish double-bottom with the February lows. This week's breakout over the $70.00 level and its exponential 200-dma looks like a new bullish entry point. We argued about whether or not to buy calls now at $71.88 or wait for a dip. We're going to go for the dip and suggest readers buy calls on a pull back into the $71.00-70.00 zone. We're risking that HUM does not pull back and we miss the move. If triggered at $71.00 we have two targets. Our first target is the $74.75-75.00 range. Our second target is the $78.00-80.00 zone but HUM will have to power through technical resistance near $75.00, its 100-dma and 50-dma to reach our second target. The P&F chart is bullish. It just produced a new triple-top breakout buy signal with an $83 target.

Suggested Options:
March options are available but we're suggesting the April calls.
Our suggested entry point is the $71.00-70.00 zone.

BUY CALL APR 70.00 HUM-DN open interest=272 current ask $5.00
BUY CALL APR 75.00 HUM-DO open interest=240 current ask $2.50

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/28/08 (unconfirmed)
Average Daily Volume = 1.9 million
 

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